MarineMax Inc. (HZO), the world's largest recreational boat and yacht retailer, saw its shares surge more than 9% in pre-market trading on Thursday after reporting a surprise adjusted profit for its fiscal 2025 first quarter.
The company reported adjusted earnings of $0.17 per share, beating analysts' expectations of a loss of $0.19 per share. However, revenue fell 11.2% year-over-year to $468.5 million, missing estimates of $485.1 million. This decline was primarily attributed to a soft retail environment for the recreational boating industry throughout 2024 and disruptions caused by Hurricanes Helene and Milton.
Despite the revenue miss, MarineMax's performance was boosted by an improvement in gross profit margin, which increased by 290 basis points to 36.2% from 33.3% in the prior-year period. This was driven by the promotional environment, product mix, and higher contribution from the company's higher-margin businesses such as marinas, superyacht services, and finance and insurance operations.
MarineMax reaffirmed its full-year guidance, expecting adjusted net income between $1.80 and $2.80 per share and adjusted EBITDA in the range of $150 million to $180 million. The company anticipates that the pace of activity will improve as the spring selling season approaches.
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