MasterCraft Boat Shares Spiral Down On Downbeat Outlook

MasterCraft Boat Holdings Inc MCFT reported a fourth-quarter FY23 sales decline of 15.5% year-on-year to $166.57 million, beating the analyst consensus of $162.08 million.

Gross profit plunged 24.9% Y/Y to $42.9 million, and the gross margin compressed by 320 basis points Y/Y to 25.8%.

Operating margin was 17.5%, and the operating income for the quarter was $29.2 million.

The company held $111.4 million in cash and equivalents as of June 30, 2023.

Adjusted EBITDA fell 31.3% Y/Y to $32.7 million. Adjusted EBITDA margin contracted 450 basis points to 19.6%.

Adjusted EPS of $1.37 beat the analyst consensus of $1.07.

Outlook: For Q1 FY24, Mastercraft Boat expects sales of about $98 million versus the Street view of $133.58 million. It sees Q1 adjusted EPS of about $0.41 against the estimate of $0.95.

The company sees FY24 sales of $390 million - $420 million, against the analyst consensus of $569.27 million.

It expects FY24 adjusted EPS of $1.46 - $1.88 versus the consensus of $3.94.

"Macroeconomic factors, including elevated interest rates as well as tightening credit standards and availability, are creating significant uncertainty which is limiting our retail demand visibility," said Fred Brightbill, Chief Executive Officer and Chairman.

Price Action: MCFT shares are trading lower by 12.9% at $21.75 on the last check Wednesday.