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MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) just released its latest quarterly results and things are looking bullish. MasterCraft Boat Holdings delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$100m, some 15% above indicated. Statutory EPS were US$0.37, an impressive 21% ahead of forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
Taking into account the latest results, MasterCraft Boat Holdings's six analysts currently expect revenues in 2020 to be US$458.2m, approximately in line with the last 12 months. Statutory earnings per share are expected to surge 141% to US$2.35. Before this earnings report, analysts had been forecasting revenues of US$457.4m and earnings per share (EPS) of US$2.38 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
With analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.8% to US$24.25. It looks as though analysts previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic MasterCraft Boat Holdings analyst has a price target of US$29.00 per share, while the most pessimistic values it at US$18.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
It can also be useful to step back and take a broader view of how analyst forecasts compare to MasterCraft Boat Holdings's performance in recent years. We would highlight that sales are expected to reverse, with the forecast 0.5% revenue decline a notable change from historical growth of 20% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 13% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect MasterCraft Boat Holdings to grow slower than the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that MasterCraft Boat Holdings's revenues are expected to perform worse than the wider market. Analysts also upgraded their price target, suggesting that analysts believe the intrinsic value of the business is likely to improve over time.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple MasterCraft Boat Holdings analysts - going out to 2021, and you can see them free on our platform here.
You can also see whether MasterCraft Boat Holdings is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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