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Marine Products (MPX) Q3 Earnings to Gain From Strong Sales
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Marine Products Corporation (MPX - Free Report) is scheduled to report third-quarter 2018 results on Oct 24, before the opening bell.
With personal income rising modestly and consumer discretionary spending increasing, the company is witnessing improved sales across its product categories. Further, a favorable tax rate and the robust top line are facilitating its earnings. Driven by such positives, Marine Products is likely to have witnessed both top- and bottom-line growth in the third quarter.
Notably, shares of Marine Products have gained 45.3% in the past year, outperforming the industry’s rally of 11.2%.
Let us find out how the company’s third-quarter results will look like.
Top Line to Gain From Strong Demand
With stronger-than-expected U.S economic growth in the second quarter, companies like Marine Products are likely to have gained, in terms of revenue growth in the to-be-reported quarter. Increased demand for leisure goods has been helping the company to witness revenue growth over the past few quarters.
In the second quarter of 2018, net sales increased 21.7% from the year-ago quarter, favored by 13.3% increase in units of boats sold and 6.9% increase in the average selling price per boat. We expect the trend to have continued in the third quarter as well.
Subsequently, the Zacks Consensus Estimate for sales in the third quarter is pegged at $66.2 million, reflecting 11.8% year-over-year increase.
Bottom-Line Picture Favorable
Despite high costs of goods sold, a strong top line is likely to have more than offset expense pressure in the third quarter. Moreover, a favorable tax rate is likely to have aided earnings in the quarter.
Subsequently, the consensus estimate for earnings of 17 cents in the third quarter reflects a 30.8% increase from the prior-year quarter.
Our Quantitative Model Does Not Predict a Beat
Marine Products doesn’t have the right combination of the two main ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — which increase odds of an earnings beat.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Marine Products currently has a Zacks Rank #3.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks from the Consumer Discretionary sector that investors may consider as our model shows that they have the right combination of elements to come up with an earnings beat in the to-be-reported quarter:
Pool Corp (POOL - Free Report) currently carries a Zacks Rank #2 (Buy) and has an Earnings ESP of +0.64%. The company is slated to report quarterly numbers on Oct 18.
Royal Caribbean (RCL - Free Report) has an Earnings ESP of +0.44% and it presently has a Zacks Rank #3. The company is expected to announce quarterly numbers on Nov 6.
Activision Blizzard has an Earnings ESP of +2.12% and a Zacks Rank #3. The company is scheduled to report quarterly numbers on Nov 8.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Marine Products (MPX) Q3 Earnings to Gain From Strong Sales
Marine Products Corporation (MPX - Free Report) is scheduled to report third-quarter 2018 results on Oct 24, before the opening bell.
With personal income rising modestly and consumer discretionary spending increasing, the company is witnessing improved sales across its product categories. Further, a favorable tax rate and the robust top line are facilitating its earnings. Driven by such positives, Marine Products is likely to have witnessed both top- and bottom-line growth in the third quarter.
Notably, shares of Marine Products have gained 45.3% in the past year, outperforming the industry’s rally of 11.2%.
Let us find out how the company’s third-quarter results will look like.
Top Line to Gain From Strong Demand
With stronger-than-expected U.S economic growth in the second quarter, companies like Marine Products are likely to have gained, in terms of revenue growth in the to-be-reported quarter. Increased demand for leisure goods has been helping the company to witness revenue growth over the past few quarters.
In the second quarter of 2018, net sales increased 21.7% from the year-ago quarter, favored by 13.3% increase in units of boats sold and 6.9% increase in the average selling price per boat. We expect the trend to have continued in the third quarter as well.
Subsequently, the Zacks Consensus Estimate for sales in the third quarter is pegged at $66.2 million, reflecting 11.8% year-over-year increase.
Bottom-Line Picture Favorable
Despite high costs of goods sold, a strong top line is likely to have more than offset expense pressure in the third quarter. Moreover, a favorable tax rate is likely to have aided earnings in the quarter.
Subsequently, the consensus estimate for earnings of 17 cents in the third quarter reflects a 30.8% increase from the prior-year quarter.
Our Quantitative Model Does Not Predict a Beat
Marine Products doesn’t have the right combination of the two main ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — which increase odds of an earnings beat.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Marine Products currently has a Zacks Rank #3.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks from the Consumer Discretionary sector that investors may consider as our model shows that they have the right combination of elements to come up with an earnings beat in the to-be-reported quarter:
Pool Corp (POOL - Free Report) currently carries a Zacks Rank #2 (Buy) and has an Earnings ESP of +0.64%. The company is slated to report quarterly numbers on Oct 18.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Royal Caribbean (RCL - Free Report) has an Earnings ESP of +0.44% and it presently has a Zacks Rank #3. The company is expected to announce quarterly numbers on Nov 6.
Activision Blizzard has an Earnings ESP of +2.12% and a Zacks Rank #3. The company is scheduled to report quarterly numbers on Nov 8.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>