MarineMax, Inc. (NYSE:HZO) shares are trading higher on Thursday.
The company reported first-quarter adjusted earnings per share of 17 cents, beating the street view for a loss of 19 cents. Quarterly sales of $468.46 million (down 11.2%), missed the analyst consensus estimate of $485.14 million.
The decrease in sales was primarily attributable to lower boat sales and disruption caused by Hurricanes Helene and Milton.
Quarterly revenue on a comparable-store basis decreased 11% from the prior-year period versus an increase of 4% in the first quarter of fiscal 2024 from the same period of fiscal 2023.
Gross profit fell 3.3% to $169.7 million in the quarter under review, but the profit margin improved by 290 basis points to 36.2%, thanks to better sales mix and higher-margin businesses.
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“The expansion of our higher-margin revenue streams through strategic acquisitions and organic growth has significantly improved our margin profile over the past several years,” said Brett McGill, Chief Executive Officer and President of MarineMax.
“This diversification also has enhanced our resilience to the challenges faced by the industry during periods of uncertainty, as demonstrated by our relatively stable Adjusted EBITDA despite the revenue decline,” McGill adds.
Outlook: MarineMax has reaffirmed its fiscal year 2025 guidance, projecting an adjusted EPS range of $1.80 to $2.80, with analyst consensus EPS of $2.37.
Price Action: HZO shares are trading higher by 18.5% to $33.11 at last check Thursday.
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