Shares of MasterCraft Boat Holdings Inc. (NASDAQ: MCFT) plunged 15.7% during premarket trading on Wednesday, reaching a 10-month low. This drop came after the powerboat maker released its fiscal 2024 outlook, projecting significantly lower performance than expected. The company cited “significant uncertainty” in retail demand due to expectations of an economic downturn.
Bleak Fiscal 2024 Outlook
According to MasterCraft, adjusted earnings per share for the fiscal year ending in June 2024 are expected to range between $1.46 and $1.88. This falls well below the FactSet consensus estimate of $4.00. Furthermore, the company anticipates sales to be in the range of $390 million to $420 million, which is significantly lower than the FactSet consensus estimate of $573.1 million.
Strong Fourth-Quarter Results
Despite the pessimistic outlook, MasterCraft reported impressive net income figures for the fiscal fourth-quarter, more than doubling from the previous year to $22.7 million, or $1.30 per share. This surpassed the FactSet consensus estimate of $11.5 million, or 63 cents per share. Adjusted earnings per share reached $1.37, beating the FactSet consensus estimate of $1.07.
Although sales fell by 15.5% to $166.6 million, they still exceeded expectations of $162.1 million.
Stock Performance
Year to date, MasterCraft shares have fallen by 3.5%, while the broader market, represented by the S&P 500 (SPX), has gained 17.1%.
