MarineMax stock hits new low on slashed outlook for 2007
MarineMax Inc. (NYSE: HZO) said early today that its earnings per share for fiscal 2007 would likely be less than half of what it initially projected.
The Clearwater, Fla.-based recreational boat retailer now expects its earnings per share for the year ending Sep. 30 to be in the range of $0.45 to $0.65, down from previous expectations of $1.40 to $1.50.
It also expects to report earnings per share ranging from $0.14 to $0.17 per diluted share for its fiscal 2008 second quarter.
Twelve analysts polled by Thomson First Call had estimated earnings per share of $1.44 for fiscal 2007. MarineMax posted earnings per share of $1.85 for fiscal 2006.
The company’s stock was down this morning $3.47, or 15%, to $19.48 on unusually heavy volume of 1.5 million shares compared with a three-month average volume of 314,000 shares. Shares reached a new 52-week-low of $19.12 earlier in the day, nearly half of the 52-week-high of $36.72 reached on April 21, 2006.
MarineMax President and CEO William H. McGill, Jr., cited continued “challenging” marine retail conditions for the disappointing preliminary earnings results.
Still, he said that MarineMax’s unit sales have grown by 20%, compared to the industry overall, which has seen unit sales in the segment that the company operates fall as much as 20%.
“Since a large percentage of our revenue is from repeat and referral buyers, these market share gains should yield greater revenue and earnings when the industry recovers,” he noted.
MarineMax, which operates 88 retail locations across the United States, is working to further reduce costs and strengthening its balance sheet.
