Wrapping up Q1 earnings, we look at the numbers and key takeaways for the automotive and marine retail stocks, including MarineMax (NYSE: HZO) and its peers.
At their essence, cars and boats get you from point A to point B, but the former is usually a necessity in everyday life while the latter is a luxury or leisure product. The retailers that sell these vehicles therefore cater to different needs and populations. There are also retailers that may not sell cars and boats themselves but the parts and accessories needed to keep these complex machines in tip top shape.
The 11 automotive and marine retail stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.4%.
Luckily, automotive and marine retail stocks have performed well with share prices up 12.6% on average since the latest earnings results.
MarineMax (NYSE: HZO)
Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE: HZO) sells boats, yachts, and other marine products.
MarineMax reported revenues of $631.5 million, up 8.3% year on year. This print exceeded analysts’ expectations by 8.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
Brett McGill, Chief Executive Officer and President of MarineMax, stated, “Despite facing a weak retail market and an uncertain macroeconomic climate, we delivered a strong second-quarter performance. Our 11% same-store sales growth highlights the exceptional execution by our team. This growth was supported by the ongoing joint promotional initiatives with our industry-leading manufacturing partners. While challenging conditions are exerting significant retail margin pressure across the recreational marine industry, our year-to-date gross margin of 32.7% is a testament to the strength of our strategic diversification. By expanding into high-value segments such as marinas, superyacht services, and finance and insurance, together with our premium brand focus, we have built a more resilient business model that continues to deliver strong performance.
MarineMax achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 27.2% since reporting and currently trades at $24.48.
Is now the time to buy MarineMax? Access our full analysis of the earnings results here, it’s free.
Best Q1: America's Car-Mart (NASDAQ: CRMT)
With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.
America's Car-Mart reported revenues of $370.2 million, up 1.9% year on year, outperforming analysts’ expectations by 7.8%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.5% since reporting. It currently trades at $51.69.
Is now the time to buy America's Car-Mart? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: OneWater (NASDAQ: ONEW)
A public company since early 2020, OneWater Marine (NASDAQ: ONEW) sells boats, yachts, and other marine products.
OneWater reported revenues of $483.5 million, flat year on year, falling short of analysts’ expectations by 2.8%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
OneWater delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 7.9% since the results and currently trades at $13.82.
Read our full analysis of OneWater’s results here.
Camping World (NYSE: CWH)
Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE: CWH) still sells RVs along with boats and general merchandise for outdoor activities.
Camping World reported revenues of $1.41 billion, up 3.6% year on year. This number came in 1% below analysts' expectations. Zooming out, it was actually a very strong quarter as it produced an impressive beat of analysts’ EBITDA and EPS estimates.
The stock is up 30.5% since reporting and currently trades at $18.40.
Read our full, actionable report on Camping World here, it’s free.
Lithia (NYSE: LAD)
With a strong presence in the Western US, Lithia Motors (NYSE: LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.
Lithia reported revenues of $9.18 billion, up 7.2% year on year. This print lagged analysts' expectations by 2.1%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ EPS estimates.
The stock is up 13.2% since reporting and currently trades at $335.73.
Read our full, actionable report on Lithia here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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