MasterCraft Boat Holdings, Inc. MCFT reported first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the top and bottom lines declined on a year-over-year basis.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Following the results, the stock surged 25% during trading hours on Wednesday. Positive investor sentiments were witnessed as MCFT provided a better-than-expected earnings outlook for fiscal 2025. Strong inventory management and a focus on enhanced shipping products reinforced confidence in future growth. Additionally, the company highlighted its robust balance sheet and disciplined capital allocation, including the recent sale of its Aviara brand and manufacturing facility, paving the path for enhanced liquidity and operational focus.

MCFT’s Q1 Earnings & Revenue Details

During the fiscal first quarter, the company reported an adjusted earnings per share (EPS) of 12 cents, beating the Zacks Consensus Estimate of 3 cents. In the prior-year quarter, MCFT reported an adjusted EPS of 60 cents.

MASTERCRAFT BOAT HOLDINGS, INC. Price, Consensus and EPS Surprise

MASTERCRAFT BOAT HOLDINGS, INC. price-consensus-eps-surprise-chart | MASTERCRAFT BOAT HOLDINGS, INC. Quote

Quarterly revenues of $65.4 million beat the Zacks Consensus Estimate of $61 million by 6.4%. However, the top line declined 30.7% on a year-over-year basis. The downside was caused by lower unit volume and unfavorable model mix and options.

During the fiscal first quarter, net sales in the MasterCraft segment were $55.5 million compared with $75.8 million reported in the prior-year quarter. Net sales in the Pontoon segment declined 46.8% year over year to $9.8 million.

Operating Highlights

During the fiscal first quarter, Selling and marketing expenses declined 6.8% year over year to $2.9 million. General and administrative expenses were $7.5 million compared with 8.4 million reported in the prior-year quarter.

Gross margin during the quarter declined 570 basis points year over year to 18.1%. The downside was driven by lower cost absorption resulting from planned reductions in unit volume and higher dealer incentives.

Adjusted EBITDA during the quarter came in at $3.8 million, compared with $14 million reported in the prior-year quarter. Adjusted EBITDA margin in the fiscal first quarter came in at 5.9% compared with 14.9% reported in the year-ago period.

Balance Sheet

As of Sept. 29, 2024, cash and cash equivalents totaled $14.2 million compared with $7.4 million on June 30, 2024.

Inventory during the quarter was $37.3 million compared with $37 million reported in the prior-year period.

As of Sept. 29, long-term debt (net of unamortized debt issuance costs) was $49.5 million compared with $44.9 million as of June 30, 2024.

Fiscal 2025 Outlook

For second-quarter fiscal 2025, the company expects net sales to be approximately $60 million. During the quarter, adjusted EBITDA is anticipated at approximately $1 million. In the fiscal second quarter, the company expects adjusted loss per share to be approximately 1 cent.

For fiscal 2025, the company expects net sales to be $270-$300 million. The company expects adjusted EBITDA to be $17-$26 million. Capital expenditures during the year are projected at $12 million. The company expects 2025 adjusted EPS to be between 55 cents and 95 cents, up from the previous expectation of 36-87 cents.

MCFT’s Zacks Rank

MasterCraft Boat currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Recent Consumer Discretionary Releases

Royal Caribbean Cruises Ltd. RCL posted impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

In the quarter, the company exceeded its guidance, driven by stronger pricing on close-in demand, continued growth in onboard revenues and reduced costs due to timing factors. The company has raised its outlook for 2024 and reported elevated demand patterns heading into 2025.

Mattel, Inc. MAT reported impressive third-quarter 2024 results, wherein the adjusted earnings and net sales topped the Zacks Consensus Estimate. The top line surpassed the consensus estimate after missing it for three consecutive quarters. On a year-over-year basis, net sales declined while adjusted earnings grew.

The company’s quarterly results benefited notably from its Optimizing for Profitable Growth program along with the focus on its multi-year strategy to expand its IP-driven toy business and entertainment offering. Although the top line was adversely impacted by reduced sales from both the reportable segments, the bottom line showed resilience through operational efficiencies.

Hilton Worldwide Holdings Inc. HLT reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.

The company's performance was backed by notable improvements in RevPAR, attributed to higher occupancy rates and average daily rates. Furthermore, in the quarter, Hilton opened 531 new hotels. It achieved net room growth of 33,600. As of Sept. 30, 2024, Hilton's development pipeline comprised nearly 3,525 hotels, with almost 492,400 rooms across 120 countries and territories — including 28 countries and regions with no running hotels. For 2024, the company expects net unit growth in the range of 7-7.5%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report

Mattel, Inc. (MAT) : Free Stock Analysis Report

Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report

MASTERCRAFT BOAT HOLDINGS, INC. (MCFT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research