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OneWater Marine (ONEW) to Post Q3 Earnings: What's in Store?

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OneWater Marine Inc. (ONEW - Free Report) is scheduled to report third-quarter fiscal 2021 results on Jul 29, before market open. In the last reported quarter, the company delivered earnings surprise of 157.8%.

How Are Estimates Faring?

The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $2.39 per share, which indicates growth of 1.3% from $2.36 registered in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $454.1 million that suggests increase of 11.2% from the prior-year quarter’s figure.

OneWater Marine Inc. Price and EPS Surprise


OneWater Marine Inc. Price and EPS Surprise

OneWater Marine Inc. price-eps-surprise | OneWater Marine Inc. Quote


Let’s analyze the factors that are likely to make an impact this earnings season.

Factors at Play

OneWater Marine fiscal third-quarter performance is likely to have benefitted from the expansion of its Sunseeker yacht relationship, service and repair offerings as well as online boat marketplace.  The idea of providing notification alerts (to meet the parameters for the specific boat) along with preowned boat additions and finance insurance services in its online platform is likely to have extended the customer and geographic reach in fiscal third quarter. Moreover, emphasis on technological investments and inventory planning tools coupled with good retail demand is likely to have boosted fiscal third-quarter top line.

The Zacks Consensus Estimate for fiscal third-quarter revenues from New boat, Pre-owned boat, Finance & insurance income and Service, parts and other are currently pegged at $314 million, $93 million, $17.6 million and $25.3 million, indicating growth of 9.4%, 8.3%, 5.6% and 35%, respectively, from the prior-year quarter’s level.

However, pandemic-induced supply and carrier constraints are likely to have hurt performance in the to-be-reported quarter. This along with inability to manage inventory and anticipate changing consumer preferences and buying trends is likely to negatively impacted the company’s operations in fiscal third quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for OneWater Marine this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.

Earnings ESP: OneWater Marine has an Earnings ESP of -2.73%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: OneWater Marine has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Golden Entertainment, Inc. (GDEN - Free Report) , sports a Zacks Rank #1, and has an Earnings ESP of +5.22%.

Churchill Downs Incorporated (CHDN - Free Report) , has a Zacks Rank #2, and an Earnings ESP of +7.42%.

Caesars Entertainment, Inc. (CZR - Free Report) , has a Zacks Rank #2, and an Earnings ESP of +265.6%.