Q2 Automotive and Marine Retail Earnings: MarineMax (NYSE:HZO) Impresses
Looking back on automotive and marine retail stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including MarineMax (NYSE:HZO) and its peers.
At their essence, cars and boats get you from point A to point B, but the former is usually a necessity in everyday life while the latter is a luxury or leisure product. The retailers that sell these vehicles therefore cater to different needs and populations. There are also retailers that may not sell cars and boats themselves but the parts and accessories needed to keep these complex machines in tip top shape.
The 11 automotive and marine retail stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 1.1%.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some automotive and marine retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.9% since the latest earnings results.
Best Q2: MarineMax (NYSE:HZO)
Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE:HZO) sells boats, yachts, and other marine products.
MarineMax reported revenues of $757.7 million, up 5% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was a very strong quarter for the company with optimistic earnings guidance for the full year and a decent beat of analysts’ earnings estimates.
“Despite persistent retail headwinds in the third quarter, our team executed well, delivering 5% top-line growth,” stated Chief Executive Officer and President Brett McGill.
MarineMax scored the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 3.8% since reporting and currently trades at $30.48.
Is now the time to buy MarineMax? Access our full analysis of the earnings results here, it’s free.
Monro (NASDAQ:MNRO)
Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.
Monro reported revenues of $293.2 million, down 10.3% year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.9% since reporting. It currently trades at $25.55.
Is now the time to buy Monro? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: OneWater (NASDAQ:ONEW)
A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products.
OneWater reported revenues of $542.4 million, down 8.7% year on year, falling short of analysts’ expectations by 11.2%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
OneWater posted the weakest performance against analyst estimates in the group. As expected, the stock is down 27.3% since the results and currently trades at $22.05.
Read our full analysis of OneWater’s results here.
Lithia (NYSE:LAD)
With a strong presence in the Western US, Lithia Motors (NYSE:LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.
Lithia reported revenues of $9.23 billion, up 13.8% year on year, in line with analysts’ expectations. Revenue aside, it was a solid quarter for the company with a decent beat of analysts’ earnings estimates.
Lithia pulled off the fastest revenue growth among its peers. The stock is up 1.8% since reporting and currently trades at $281.21.
Read our full, actionable report on Lithia here, it’s free.
CarMax (NYSE:KMX)
Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE:KMX) is the largest automotive retailer in the United States.
CarMax reported revenues of $7.11 billion, down 7.5% year on year, in line with analysts’ expectations. Overall, it was a decent quarter for the company with a solid beat of analysts’ gross margin estimates.
The stock is up 13.4% since reporting and currently trades at $80.91.
Read our full, actionable report on CarMax here, it’s free.
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