Stock Story -
What Happened: Shares of boat and marine products retailer OneWater Marine (NASDAQ:ONEW) fell 20.8% in the pre-market session after the company reported second-quarter earnings results. Its revenue and EPS missed analysts' expectations, and its full-year earnings forecast fell short of Wall Street's estimates. Notably, revenue declined by 8.7%, mostly due to weaknesses in the New boat segment (sales down 10.4%). Overall, this quarter could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy OneWater? Find out by reading the original article on StockStory, it's free.
What is the market telling us: OneWater's shares are somewhat volatile and over the last year have had 24 moves greater than 5%. But moves this big are very rare even for OneWater and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 12 months ago, when the stock dropped 6% on the news that the company reported weak third quarter results that missed analysts' expectations for revenue and same-store sales. Notably, earnings per share also missed by a whopping 42%. In addition, gross margin deteriorated.
The CEO called out "...a deteriorating selling environment" and how "The marine industry continues to transition back to historical norms and moderated pricing. However, the pace of this transition accelerated ahead of expectations, which pressured margins in the third quarter". Overall, it was a bad quarter for OneWater.
OneWater is down 20.5% since the beginning of the year, and at $26.27 per share it is trading 30.9% below its 52-week high of $38.02 from July 2023. Investors who bought $1,000 worth of OneWater's shares at the IPO in February 2020 would now be looking at an investment worth $1,735.
