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Factors Setting the Tone for Malibu Boats' (MBUU) Q2 Earnings

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Malibu Boats, Inc. (MBUU - Free Report) is scheduled to report second-quarter fiscal 2024 results on Jan 30, before market open. In the past reported quarter, its earnings surpassed the Zacks Consensus Estimate by 25.6%.

Trend in Estimate Revision

The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings per share has remained unchanged at 51 cents over the past 60 days. The estimated figure indicates a 72.1% plunge from the prior-year quarter’s reported value.

For net sales, the consensus mark is pegged at $219.3 million, suggesting a decline of 35.3% from the prior-year quarter’s reported figure.

Key Factors to Consider

Malibu Boats’ top line in second-quarter fiscal 2024 is likely to have been hurt by weak Malibu segment performance, attributed to lower unit volumes and increased dealer flooring program costs. Revenues from the Cobalt and Saltwater Fishing segments are expected to have declined. Moreover, given the risky microenvironment, consumers are also cautious toward discretionary spending.

For the to-be-reported quarter, the consensus estimate for the Malibu and Cobalt segments net sales is pegged at $99 million and $49.4 million, down 37.3% and 34.1%, respectively, from the year-ago levels.

Meanwhile, the company’s margins are likely to have been affected by increased operating expenses, given the ongoing inflationary environment. The rise in operating expenses is likely to have been driven by increased selling and marketing as well as general and administrative expenses.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Malibu Boats this time around. The company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.

Earnings ESP: MBUU has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: MBUU currently carries a Zacks Rank #3.

Malibu Boats, Inc. Price and EPS Surprise Malibu Boats, Inc. Price and EPS Surprise

Malibu Boats, Inc. price-eps-surprise | Malibu Boats, Inc. Quote

Stocks Poised to Beat Earnings Estimates

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

MGM Resorts International (MGM - Free Report) has an Earnings ESP of +10.13% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of MGM Resorts have increased 7.8% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.

Live Nation Entertainment, Inc. (LYV - Free Report) has an Earnings ESP of +2.68% and a Zacks Rank #3.

Shares of Live Nation Entertainment have rallied 15.7% in the past three months. LYV’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 37.5%.

Hasbro, Inc. (HAS - Free Report) has an Earnings ESP of +4.48% and a Zacks Rank #3.

Shares of Hasbro have declined 15% in the past three months. HAS’ earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 22.4%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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