Back to top

Image: Bigstock

Factors Setting the Tone for MarineMax's (HZO) Q3 Earnings

Read MoreHide Full Article

MarineMax, Inc. (HZO - Free Report) is likely to register an increase in the top line when it reports third-quarter fiscal 2021 numbers on Jul 22, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $632.9 million, indicating an improvement of 27% from the prior-year reported figure.

The bottom line of the world’s largest recreational boat and yacht retailer is expected to increase year over year. The Zacks Consensus Estimate for earnings for the quarter under review has moved up by a penny to $2.10 in the past seven days. The figure suggests a sharp improvement from earnings of $1.58 per share reported in the year-ago period.

Notably, this Clearwater, FL-based company has a trailing four-quarter earnings surprise of 125.8%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a significant margin of 131.5%.

Factors to Note

MarineMax’s strategic investments in high-margin businesses such as finance, insurance, brokerage, marina and service operations bode well. Markedly, the acquisitions of KCS International, better known as Cruisers Yachts in May 2021, has bolstered the company’s product portfolio.

The company’s buyouts of Northrop & Johnson in July 2020 and Fraser Yachts in 2019 strengthened its position in the superyacht category. In October last year, the company announced the buyout of SkipperBud’s and its affiliate, Silver Seas Yachts. The acquisition has meaningfully enhanced MarineMax’s presence in the Great Lakes region and the West Coast of the United States. Quite obviously, aforementioned strategic acquisitions have been positively impacting the company’s revenue performance.

MarineMax’s significant geographic reach and product diversification coupled with stellar demand are likely to get reflected in the to-be-reported quarter’s top line. We note that the company has been largely benefiting as consumers embrace and enjoy the boating lifestyle. The company’s digitization endeavors have been helping it to better engage with customers. Its efficient expense management has been contributing toward margin expansion.

 

MarineMax, Inc. Price, Consensus and EPS Surprise

MarineMax, Inc. Price, Consensus and EPS Surprise

MarineMax, Inc. price-consensus-eps-surprise-chart | MarineMax, Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for MarineMax this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

MarineMax has an Earnings ESP of -2.38% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Boot Barn Holdings (BOOT - Free Report) has an Earnings ESP of +2.42% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Costco (COST - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #2.

American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +2.62% and a Zacks Rank #3.