Back to top

Image: Bigstock

Bear of the Day: Marine Productsd (MPX)

Read MoreHide Full Article

Marine Products (MPX - Free Report) is the third-largest distributor of sterndrive powerboats in the U.S. The company designs, manufactures and distributes premium-branded Chaparral sterndrive pleasure boats and Robalo outboard offshore fishing boats, and continues to diversify its product line through product innovation and strategic acquisition. MPX is based in Atlanta, GA.d

Q4 Results Disappoint

Back in January, Marine Products reported weaker-than-expected results in its fiscal 2018 fourth quarter.

Earnings of 14 cents missed the Zacks Consensus Estimate and also fell year-over-year. Revenues of $62.1 million lagged behind our consensus as well, and declined 5.4% from the prior-year period.

International sales fell by more than 50% year-over-year to 3.2% of total sales, mostly due to the impact of tariffs enacted last year.

Gross profit for Q4 was about $13 million, and gross margin as a percentage of sales came in at 21% compared to 21.9% in Q4 2017.

However, President and CEO Richard A. Hubbell did note that even though U.S. sales dropped slightly in Q4 compared to the prior year, the U.S. recreational boat market was strong all throughout 2018, which helped benefit Marine Products throughout the year.

Falling Estimates

Analysts have since turned bearish on Marine Products, with two cutting estimates in the last 60 days for the current fiscal year. Earnings are expected to decline 9%, and the Zacks Consensus Estimate has dropped 14 cents during that same time period from $0.89 to $0.75 per share.

This sentiment has stretched into 2020, and our consensus estimate has dropped 15 cents in the past two months.

MPX is now a Zacks Rank #5 (Strong Sell).

Shares of the boat maker are falling too, down about 17% since January. In comparison, the S&P 500 is up 10.5% year-to-date.

If you’re an investor interested in adding a stock from the leisure and recreational industry to your portfolio, consider Malibu Boats (MBUU - Free Report) . Shares of Zacks Rank #2 (Buy) MBUU, which is a designer of sports boats here in the U.S., has gained over 33% since January.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marine Products Corporation (MPX) - free report >>

Malibu Boats, Inc. (MBUU) - free report >>

Published in