Loading...
•
Sep 30, 2020
Marine Products Q3 2020 Earnings Report
Reported a decrease in net sales due to a reduction in units sold, but gross profit increased due to a favorable model mix.
Key Takeaways
Marine Products Corporation reported a decrease in net sales by 4.8% due to a reduction in unit sales, but this was partially offset by a 7.8% increase in the average selling price per boat. Gross profit increased by 3.1%, driven by a favorable model mix. However, operating profit and net income decreased due to higher selling, general, and administrative expenses.
Net sales decreased by 4.8% compared to the same period last year, totaling $68,778,000.
Gross profit increased by 3.1% due to a favorable model mix of larger boats.
Operating profit decreased by 14.0% due to increased selling, general, and administrative expenses.
Net income decreased by 16.8% compared to the third quarter of 2019, resulting in diluted earnings per share of $0.19.
Forward Guidance
The company is evaluating an increase in production levels, subject to supply chain constraints and labor availability, to meet dealer demand. They are also planning alternative marketing strategies for the 2021 models due to uncertainty surrounding in-person boat shows.
Positive Outlook
- Continuing to operate at the highest feasible operational cadence to fulfill the largest order backlog in many years.
- Dealer inventories remain at historically low levels.
- Benefiting from the highest consumer demand in many years due to the effects of the COVID-19 pandemic.
- Reported growing market share in sterndrive and outboard markets.
- Evaluating an increase in production levels to satisfy dealer demand.
Challenges Ahead
- Supply chain constraints and labor availability may impact production levels.
- Uncertainty surrounding the feasibility of in-person winter boat shows.
- Lower research and development tax credit compared to the prior year.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...