The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how OneWater (NASDAQ:ONEW) and the rest of the automotive and marine retail stocks fared in Q2.
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 slower Q2. As a group, revenues missed analysts’ consensus estimates by 1.1%.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and automotive and marine retail stocks have had a rough stretch. On average, share prices are down 6.8% since the latest earnings results.
Weakest Q2: OneWater (NASDAQ:ONEW) A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products.
OneWater reported revenues of $542.4 million, down 8.7% year on year. This print fell short of analysts’ expectations by 11.2%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
“In the third quarter, our strategic inventory management and operational execution drove outperformance against the industry. However, our performance for the quarter was below our expectations due to a progressively weaker market environment and a negative impact from weather in Texas,” commented Austin Singleton, Chief Executive Officer at OneWater.
OneWater delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 27.3% since reporting and currently trades at $22.05.
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Best Q2: MarineMax (NYSE:HZO) Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE:HZO) sells boats, yachts, and other marine products.
MarineMax reported revenues of $757.7 million, up 5% year on year, outperforming analysts’ expectations by 5.2%. It was a very strong quarter for the company with optimistic earnings guidance for the full year and a decent beat of analysts’ earnings estimates.
MarineMax pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.8% since reporting. It currently trades at $30.48.
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 $347.8 million, down 4.9% year on year, exceeding analysts’ expectations by 1.2%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 13% since the results and currently trades at $52.28.
Genuine Parts (NYSE:GPC) Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Genuine Parts reported revenues of $5.96 billion, flat year on year, falling short of analysts’ expectations by 1.2%. Overall, it was a weak quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts’ earnings estimates.
The stock is flat since reporting and currently trades at $139.
AutoZone (NYSE:NYSE:AZO) Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
AutoZone reported revenues of $4.24 billion, up 3.5% year on year, falling short of analysts’ expectations by 1.3%. Revenue aside, it was a mixed quarter for the company with a narrow beat of analysts’ gross margin estimates.
The stock is up 7.3% since reporting and currently trades at $3,141.
This content was originally published on Stock Story
