Analysts Just Shaved Their Malibu Boats, Inc. (NASDAQ:MBUU) Forecasts Dramatically
One thing we could say about the analysts on Malibu Boats, Inc. (NASDAQ:MBUU) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
After the downgrade, the consensus from Malibu Boats' seven analysts is for revenues of US$894m in 2024, which would reflect a painful 26% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to dive 22% to US$2.47 in the same period. Before this latest update, the analysts had been forecasting revenues of US$1.1b and earnings per share (EPS) of US$4.88 in 2024. Indeed, we can see that the analysts are a lot more bearish about Malibu Boats' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for Malibu Boats
It'll come as no surprise then, to learn that the analysts have cut their price target 16% to US$49.57.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 46% by the end of 2024. This indicates a significant reduction from annual growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Malibu Boats is expected to lag the wider industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Malibu Boats. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Malibu Boats.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Malibu Boats analysts - going out to 2026, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
