MasterCraft (MCFT) Q3 Earnings Report Preview: What To Look For

Sport boat manufacturer MasterCraft (NASDAQ:MCFT) will be reporting earnings tomorrow before the bell. Here’s what to expect.

MasterCraft beat analysts’ revenue expectations by 6.5% last quarter, reporting revenues of $67.18 million, down 59.7% year on year. It was a slower quarter for the company, with underwhelming earnings guidance for the full year. It reported 560 total units, down 62.1% year on year.

Is MasterCraft a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting MasterCraft’s revenue to decline 41.2% year on year to $61.25 million, a further deceleration from the 38.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MasterCraft has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.7% on average.

Looking at MasterCraft’s peers in the leisure products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Malibu Boats’s revenues decreased 32.9% year on year, beating analysts’ expectations by 2.6%, and Harley-Davidson reported a revenue decline of 25.7%, topping estimates by 17.9%. Malibu Boats’s stock price was unchanged after the results, and Harley-Davidson’s price followed a similar reaction.

Read our full analysis of Malibu Boats’s results here and Harley-Davidson’s results here.

Investors in the leisure products segment have had steady hands going into earnings, with share prices up 2% on average over the last month. MasterCraft’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $19.33 (compared to the current share price of $17.45).

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