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MasterCraft Boat Holdings, Inc. (MCFT - Free Report) is seeing record quarters as everyone wants to vacation closer to home. This Zacks Rank #1 (Strong Buy) is still expected to see double digit sales growth into next fiscal year.
MasterCraft Boat Holdings is a designer and manufacturer of recreational powerboats through its 4 brands: MasterCraft, NauticStar, Crest and Aviara.
It has a leading market share in three of the fastest growing segments of the powerboat industry: performance sport boats, outboard saltwater fishing and pontoon boats.
MasterCraft has also entered the growing luxury day boat segment.
Third Beat in a Row in the Fiscal Second Quarter
On Feb 10, MasterCraft reported its second fiscal quarter and beat by 47%. Earnings were $0.75 versus the Zacks Consensus of $0.51.
It was the third straight big beat in a row.
Sales were up 19% to $118.7 million from $99.6 million in the year ago quarter.
Gross margin was up 340 basis points to 24.7%.
It was the most profitable second quarter in the company's history.
Raised Fiscal 2021 Full Year Guidance
The company continued to see strong consumer demand throughout the fiscal second quarter so that gave them confidence to raise full year guidance.
Net sales for the full year are expected to grow in the mid-to-high 30% range, year-over-year.
For the fiscal 2021 third quarter, it expected earnings per share growth to approach 60%.
Analysts Get Bullish
With the company raising guidance, so did the analysts.
5 estimates were raised for fiscal 2021 estimates in the last month, pushing the Zacks Consensus up to $2.65 from $2.47. That is earnings growth of 97.8% compared to the prior year when MasterCraft made just $1.34.
But is this just a pandemic play?
Will sales, and earnings, retreat in fiscal 2022, which begins in the second half of calendar 2021, as the global economy reopens?
The analysts don't think so.
5 estimates were also raised for next fiscal year, pushing the Zacks Consensus up to $3.09 from $2.83. That's further earnings growth of 16.5%.
Consumers have been saving money over the last year and are still looking to buy outdoor products.
Shares Soar Over the Last Year: Is it Too Late to Buy?
MasterCraft was a pandemic play. If you can't travel anywhere, why not buy a boat and vacation within your own bubble?
Shares are up 132% over the last year and have added 24.3% in 2021 alone.
Is it too hot to handle?
Shares are still cheap, on a P/E basis. They have a forward P/E of just 11.4.
It also has a P/S ratio of just 1.5.
Other companies in the industry are also cheap, even as their shares have soared, as earnings are on the rise.
Malibu Boats, Inc. (MBUU - Free Report) , a Zacks Rank #2 (Buy) is trading with a forward P/E of 15.4.
Boat retailer MarineMax,Inc. (HZO - Free Report) , also a Rank #2 (Buy), is trading with a forward P/E of just 12.7.
For those looking for a way to invest in the coming economic recovery, MasterCraft is one to keep on the short list.
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Image: Shutterstock
Bull of the Day: MasterCraft Boat (MCFT)
MasterCraft Boat Holdings, Inc. (MCFT - Free Report) is seeing record quarters as everyone wants to vacation closer to home. This Zacks Rank #1 (Strong Buy) is still expected to see double digit sales growth into next fiscal year.
MasterCraft Boat Holdings is a designer and manufacturer of recreational powerboats through its 4 brands: MasterCraft, NauticStar, Crest and Aviara.
It has a leading market share in three of the fastest growing segments of the powerboat industry: performance sport boats, outboard saltwater fishing and pontoon boats.
MasterCraft has also entered the growing luxury day boat segment.
Third Beat in a Row in the Fiscal Second Quarter
On Feb 10, MasterCraft reported its second fiscal quarter and beat by 47%. Earnings were $0.75 versus the Zacks Consensus of $0.51.
It was the third straight big beat in a row.
Sales were up 19% to $118.7 million from $99.6 million in the year ago quarter.
Gross margin was up 340 basis points to 24.7%.
It was the most profitable second quarter in the company's history.
Raised Fiscal 2021 Full Year Guidance
The company continued to see strong consumer demand throughout the fiscal second quarter so that gave them confidence to raise full year guidance.
Net sales for the full year are expected to grow in the mid-to-high 30% range, year-over-year.
For the fiscal 2021 third quarter, it expected earnings per share growth to approach 60%.
Analysts Get Bullish
With the company raising guidance, so did the analysts.
5 estimates were raised for fiscal 2021 estimates in the last month, pushing the Zacks Consensus up to $2.65 from $2.47. That is earnings growth of 97.8% compared to the prior year when MasterCraft made just $1.34.
But is this just a pandemic play?
Will sales, and earnings, retreat in fiscal 2022, which begins in the second half of calendar 2021, as the global economy reopens?
The analysts don't think so.
5 estimates were also raised for next fiscal year, pushing the Zacks Consensus up to $3.09 from $2.83. That's further earnings growth of 16.5%.
Consumers have been saving money over the last year and are still looking to buy outdoor products.
Shares Soar Over the Last Year: Is it Too Late to Buy?
MasterCraft was a pandemic play. If you can't travel anywhere, why not buy a boat and vacation within your own bubble?
Shares are up 132% over the last year and have added 24.3% in 2021 alone.
Is it too hot to handle?
Shares are still cheap, on a P/E basis. They have a forward P/E of just 11.4.
It also has a P/S ratio of just 1.5.
Other companies in the industry are also cheap, even as their shares have soared, as earnings are on the rise.
Malibu Boats, Inc. (MBUU - Free Report) , a Zacks Rank #2 (Buy) is trading with a forward P/E of 15.4.
Boat retailer MarineMax,Inc. (HZO - Free Report) , also a Rank #2 (Buy), is trading with a forward P/E of just 12.7.
For those looking for a way to invest in the coming economic recovery, MasterCraft is one to keep on the short list.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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