Factors to Know Ahead of MarineMax's (HZO) Q3 Earnings

MarineMax, Inc. HZO is likely to register an increase in the top line when it reports third-quarter fiscal 2020 numbers on Jul 23, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $412.9 million, indicating an improvement of 7.7% from the prior-year reported figure.

However, the company’s bottom line is expected to decline year over year. The Zacks Consensus Estimate for earnings for the quarter under review has remained stable at 70 cents in the past 30 days. The figure suggests a decline of roughly 16.7% from the year-ago period.

MarineMax’s bottom line has outperformed the Zacks Consensus Estimate in each of the trailing four quarters. The company, which is the nation’s largest recreational boat and yacht retailer, delivered an earnings surprise of 27.8% in the last reported quarter.

Factors to Note

The company’s strategic investment in high margin businesses such as finance, insurance, brokerage, marina and service operations bode well. Additionally, the company’s 2019 acquisition of Fraser Yachts has strengthened its position in the superyacht category. The buyout has been accretive to revenues and margins. Notably, the company’s digitization endeavors has been helping it to better engage with customers at a time when social distancing has become the “new normal.”

MarineMax, Inc. Price, Consensus and EPS Surprise

MarineMax, Inc. price-consensus-eps-surprise-chart | MarineMax, Inc. Quote

Further, management on its lastearnings callinformed that it had noticed improvement in sales trend in April. This was in contrast to March, when sales and traffic were hit by COVID-19. It goes without saying that the company has been undertaking steps to mitigate the impact of the pandemic. These include lowering orders from manufacturers, reducing operating expenses, delaying or lowering capital expenditures, and furloughing associates.

What the Zacks Model Unveils

Our proven model does not conclusively predict a beat for MarineMax this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MarineMax has a Zacks Rank #1 but an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Big Lots BIG has an Earnings ESP of +11.8% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Best Buy BBY has an Earnings ESP of +44.52% and a Zacks Rank #3.

Costco COST has an Earnings ESP of +0.76% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.