Why Malibu Boats (MBUU) stock is plummeting today
What Happened: Shares of recreational boat maker Malibu Boats (NASDAQ:) fell 16.4% in the morning session after the company reported second-quarter results, which missed Wall’s revenue expectations Street. Forecasts were also concerning, with the company forecasting that revenues would decline by “mid-to-high thirties percentage, year over year” from 2023 and below Wall Street estimates. Finally, management commentary in the press release highlighted “weak retail demand,” “elevated inventory levels,” and “uncertainty” in the macroeconomic environment. On the other hand, Malibu Boats beat analysts’ expectations on EPS and operating margin during the quarter. Zooming out, this was a mixed but overall mediocre quarter.
The stock market overreacts to news, and sharp price drops can provide good opportunities to buy high-quality stocks. Is it time to buy Malibu Boats? Find out by reading the original article on StockStory.
What the market tells us: Malibu Boats shares are not very volatile compared to the market average and in the last year they have only had 9 movements greater than 5%. Such large moves are very rare for Malibu Boats and this tells us that this news has had a significant impact on the market’s perception of the business.
Malibu Boats is down 20.2% year to date and at $43.01 per share is trading 34% below its 52-week high of $65.17 from February 2023. Investors who have purchased $1,000 worth of Malibu Boats stock 5 years ago you would now be looking at an investment worth $1,072.