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Leisure Products Stocks Q3 Highlights: Malibu Boats (NASDAQ:MBUU)

By: StockStory

January 06, 2025 at 04:05 AM EST

MBUU Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at leisure products stocks, starting with Malibu Boats (NASDAQ: MBUU).

Leisure products cover a wide range of goods in the consumer discretionary sector. Maintaining a strong brand is key to success, and those who differentiate themselves will enjoy customer loyalty and pricing power while those who don’t may find themselves in precarious positions due to the non-essential nature of their offerings.

The 14 leisure products stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 1.1% below.

While some leisure products stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.7% since the latest earnings results.

Malibu Boats (NASDAQ: MBUU)

Founded in California in 1982, Malibu Boats (NASDAQ: MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts.

Malibu Boats reported revenues of $171.6 million, down 32.9% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

"During the first fiscal quarter, we continued to navigate a challenging retail environment. While we see some encouraging signs from a macro perspective, our team remains focused on managing the factors within our control, particularly through disciplined inventory management and executing our strategic initiatives," commented Steve Menneto, Chief Executive Officer of Malibu Boats,

The stock is down 12.4% since reporting and currently trades at $36.97.

Is now the time to buy Malibu Boats? Access our full analysis of the earnings results here, it’s free.

Best Q3: American Outdoor Brands (NASDAQ: AOUT)

Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ: AOUT) is an outdoor and recreational products company that offers firearms and firearm accessories.

American Outdoor Brands reported revenues of $60.23 million, up 4% year on year, outperforming analysts’ expectations by 13.1%. The business had an incredible quarter with a solid beat of analysts’ EPS and EBITDA estimates.

American Outdoor Brands achieved the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 46.3% since reporting. It currently trades at $15.95.

Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Clarus (NASDAQ: CLAR)

Initially a financial services business, Clarus (NASDAQ: CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.

Clarus reported revenues of $67.12 million, down 17.4% year on year, falling short of analysts’ expectations by 8.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

Clarus delivered the weakest full-year guidance update in the group. As expected, the stock is down 3.4% since the results and currently trades at $4.59.

Read our full analysis of Clarus’s results here.

Ruger (NYSE: RGR)

Founded in 1949, Ruger (NYSE: RGR) is an American manufacturer of firearms for the commercial sporting market.

Ruger reported revenues of $122.3 million, up 1.2% year on year. This print lagged analysts' expectations by 10.8%. It was a disappointing quarter as it also recorded a significant miss of analysts’ EBITDA and EPS estimates.

Ruger had the weakest performance against analyst estimates among its peers. The stock is down 13.6% since reporting and currently trades at $35.23.

Read our full, actionable report on Ruger here, it’s free.

MasterCraft (NASDAQ: MCFT)

Started by a waterskiing instructor, MasterCraft (NASDAQ: MCFT) specializes in designing, manufacturing, and selling sport boats.

MasterCraft reported revenues of $65.36 million, down 30.7% year on year. This number beat analysts’ expectations by 6.7%. It was a strong quarter as it also logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 7.7% since reporting and currently trades at $18.98.

Read our full, actionable report on MasterCraft here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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