Yahoo Finance OneWater Marine's (ONEW) Q1 Earnings & Revenues Lag Estimates
OneWater Marine Inc. ONEW reported first-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line declined on a year-over-year basis.
Earnings & Revenues Details
During the fiscal fourth quarter, the company reported an adjusted loss per share of 38 cents, missing the Zacks Consensus Estimate of 30 cents. In the prior-year quarter, ONEW reported an adjusted earnings per share (EPS) of 73 cents.
Quarterly revenues of $364 million missed the Zacks Consensus Estimate of $370 million. The top line declined 0.7% on a year-over-year basis. The downside can be attributed to the return to conventional seasonal trends and shifts in product mix.
OneWater Marine Inc. Price, Consensus and EPS Surprise
OneWater Marine Inc. price-consensus-eps-surprise-chart | OneWater Marine Inc. Quote
During the quarter, new boat revenue increased 3.7% year over year to $241.1 million. The upside was driven by an increase in average price per unit, partially offset by a decline in units sold. Finance & insurance income fell 17.6% year over year to $7.4 million.
Pre-owned boat revenue in the fiscal first quarter declined 4.5% year over year to $53.3 million. The downside was mainly due to a fall in brokerage and consignment sales. However, this was partially offset by the increase in pre-owned sales from trade-ins.
Service, parts, and other sales declined by 10.4% year over year to $62.3 million. The downside can be attributed to a decrease in parts and accessories sold to original equipment manufacturers and the sale of Roscioli Yachting Centre and Lookout Marines.
Operating Highlights
During the fiscal first quarter, selling, general and administrative expenses (as a percentage of total revenue) came in at 21.9%, up from 21.2% reported in the year-ago quarter. The increase was driven by expenses incurred to support revenue maintenance (particularly increased boat show-related expenses). However, this was partially offset by reduced personnel expenses.
Gross profit during the quarter came in at $91.4 million compared with $110 million reported in the prior-year quarter. The downside was caused by the seasonal shift in volume, mix and size of boats sold and lower revenues from higher-margin businesses. Gross margins during the quarter contracted 490 basis points year over year to 25.1%.
Adjusted EBITDA during the quarter came in at $7.1 million compared with $30.4 million reported in the prior-year quarter.
Balance Sheet
Cash and cash equivalents as of Dec 31, 2023, totaled $46 million compared with $84.6 million on Sep 30, 2023.
Inventory during the quarter came in at $706.8 million compared with $609.6 million reported in the previous quarter.
As of Dec 31, 2023, the long-term debt stood at $439.8 million compared with $457.8 million reported in the prior quarter.
Fiscal 2024 Outlook
For the fiscal 2024, the company expects dealership same-store sales to be up in the low to mid-single digits. Adjusted EBITDA is projected to be between $130 million and $155 million. The company expects EPS to be between $3.25 and $3.75 in fiscal 2024.
Zacks Rank & Other Key Picks
OneWater Marine currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
H World Group Limited HTHT currently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has declined 31.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.9% and 9.8%, respectively, from the year-ago period’s levels.
Carnival Corporation & plc CCL carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 19.2%, on average. The stock has gained 40.5% in the past year.
The Zacks Consensus Estimate for CCL’s fiscal 2024 sales indicates a rise of 13.7% from the year-ago levels.
Acushnet Holdings Corp. GOLF carries a Zacks Rank #2. GOLF has a trailing four-quarter earnings surprise of 49.9% on average. The stock has gained 29.2% in the past year.
The Zacks Consensus Estimate for GOLF’s 2024 sales and EPS indicates a rise of 2.5% and 5%, respectively, from the year-ago period’s levels.
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