MarineMax (HZO) Stock Jumps 7.3%: Will It Continue to Soar?

MarineMax HZO shares soared 7.3% in the last trading session to close at $50.41. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.1% loss over the past four weeks.

Shares of MarineMax got a boost following the company’s stronger-than-anticipated second-quarter fiscal 2021 results and an upbeat outlook.

The company posted quarterly earnings of $1.69 per share that handily beat the Zacks Consensus Estimate of $0.73 and rose significantly from $0.23 reported in the year-ago period.

MarineMax generated revenues of $523.1 million that surpassed the Zacks Consensus Estimate of $444 million, and surged approximately 70% from the year-ago period. Same-store sales surged over 45% on account of rise in comparable new units sold owing to the robust demand for boating.

Markedly, the company’s significant geographic reach and product diversification coupled with digitization endeavors have been contributing to its performance. Also, the company has been largely benefiting as consumers embrace and enjoy the boating lifestyle. Moreover, a greater number of existing customers are upgrading to larger and newer boats.

Taking into account current business conditions and retail trends, management now envisions fiscal 2021 earnings in the band of $5.50-$5.65 per share, up from the prior projected range of $4.00-$4.20.

Price and Consensus

Price Consensus Chart for HZO

This recreational boat dealer is expected to post quarterly earnings of $1.62 per share in its upcoming report, which represents a year-over-year change of +2.5%. Revenues are expected to be $579.1 million, up 16.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For MarineMax, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HZO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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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.

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