MCFT - MasterCraft Boat stock sails higher on signal of resilient sales momentum

2023-05-10 08:33:15 ET

MasterCraft Boat Holdings ( NASDAQ: MCFT ) shares were buoyed higher before the bell on Wednesday after the company topped Q3 expectations.

Despite recessionary fears, the company carried past EPS expectations set at $1.04 by posting $1.38 in EPS, as a revenue decline of 10.7% year over year to  $166.8M was better than feared as well. The company also highlighted record operating cash flow “due to strong earnings and diligent working capital management.” An adjusted EBITDA report of $33M also cruised past the $26.5 analyst expectation.

“During the quarter, we achieved our goal of refilling dealer inventories to optimal levels ahead of the summer selling season. Despite near-term macroeconomic headwinds, retail activity has performed closer to the upper end of our range of expectations through our fiscal third quarter,” CEO Fred Brightbill commented. “Our robust portfolio of innovative products and healthy dealer inventory levels position us to capitalize on the summer selling season. Additionally, our fortress balance sheet provides us with abundant financial flexibility to pursue our capital allocation priorities, first and foremost of which is investment in growth.”

The company now expects consolidated net sales for the full yar to reach $656 million, up from a prior forecast of $620M to $640M and above the $632.52M consensus. Adjusted EBITDA guidance of approximately $125M was also raised from a prior guide of $111M to $118M while earnings per share of approximately $5.05 were targeted, well above the $4.56 consensus.

MasterCraft ( MCFT ) stock moved 4.33% higher on light volume in premarket action after the print .

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