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Update: Malibu Boats Reports Underwhelming FQ2 Earnings

Malibu Boats, Inc. (MBUU) reported a disappointing FQ2 in which it showed acceptable growth of net sales in the quarter and in the F1H but showed greater growth of COGS. This combined with the company's scale-up expenses (growth to S&M and G&A) caused minimal operating income growth in the quarter and operating income contraction in the F1H. Equally as troubling, after factoring in non-OPEX, MBUU's net income fell 23% in the F1H.

After detailing my growing concerns with MBUU - mainly that growth was slow and that macroeconomic factors might continue to press on the discretionary consumer funds the company is dependent on for sales, and moving the name to an active watch list, the most recent reports have forced me to sell my position. I will close out my MBUU position in the green 10.8% which is highly disappointing considering I've spent 9 months invested.

While MBUU's light FQ2… Read More …