Q2 Rundown: MasterCraft (NASDAQ:MCFT) Vs Other Leisure Products Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at MasterCraft (NASDAQ:MCFT) and the best and worst performers in the leisure products industry.

Leisure products cover a wide range of goods in the consumer discretionary sector. Maintaining a strong brand is key to success, and those who differentiate themselves will enjoy customer loyalty and pricing power while those who don’t may find themselves in precarious positions due to the non-essential nature of their offerings.

The 16 leisure products stocks we track reported a slower Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 16.6% below.

The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

Thankfully, leisure products stocks have been resilient with share prices up 7.9% on average since the latest earnings results.

MasterCraft (NASDAQ:MCFT)

Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats.

MasterCraft reported revenues of $67.18 million, down 59.7% year on year. This print exceeded analysts’ expectations by 6.5%. Despite the top-line beat, it was still a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations.

Brad Nelson, Chief Executive Officer, commented, “MasterCraft delivered results ahead of our latest expectations as we navigated a challenging economic environment and a highly competitive retail landscape during the fourth quarter and fiscal year. We executed well against our strategic and operational priorities during the year as we destocked field inventory levels, advanced consumer-centric initiatives, and returned capital to shareholders, all while optimizing profitability and cash flow.”

MasterCraft delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 8.8% since reporting and currently trades at $18.11.

Read our full report on MasterCraft here, it’s free.

Best Q2: American Outdoor Brands (NASDAQ:AOUT)

Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ:AOUT) is an outdoor and recreational products company that offers firearms and firearm accessories.

American Outdoor Brands reported revenues of $41.64 million, down 4.1% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.7% since reporting. It currently trades at $9.02.

Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Polaris (NYSE:PII)

Founded in 1954, Polaris (NYSE:PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.

Polaris reported revenues of $1.96 billion, down 12.3% year on year, falling short of analysts’ expectations by 9.8%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.

Interestingly, the stock is up 2.7% since the results and currently trades at $84.33.

Read our full analysis of Polaris’s results here.

Solo Brands (NYSE:DTC)

Started through a Kickstarter campaign, Solo Brands (NYSE:DTC) is a provider of outdoor and recreational products.

Solo Brands reported revenues of $131.6 million, flat year on year. This result beat analysts’ expectations by 2.4%. Zooming out, it was a slower quarter as it logged full-year revenue guidance which missed analysts’ expectations.

The stock is down 23.5% since reporting and currently trades at $1.53.

Read our full, actionable report on Solo Brands here, it’s free.

Malibu Boats (NASDAQ:MBUU)

Founded in California in 1982, Malibu Boats (NASDAQ:MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts.

Malibu Boats reported revenues of $158.7 million, down 57.4% year on year. This number surpassed analysts’ expectations by 1.1%. More broadly, it was a slower quarter with earnings falling below analysts’ estimates.

The stock is up 14.8% since reporting and currently trades at $40.09.

Read our full, actionable report on Malibu Boats here, it’s free.

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