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Q2 Earnings Highlights: OneWater (NASDAQ:ONEW) Vs The Rest Of The Automotive and Marine Retail Stocks

StockStory - Tue Oct 3, 2023

ONEW Cover Image

As we reflect back on the just completed Q2 automotive and marine retail sector earnings season, we dig into the relative performance of OneWater (NASDAQ:ONEW) and its peers.

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 weak Q2; on average, revenues were in line with analyst consensus estimates, while on average next quarter revenue guidance was 2.61% under consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again and automotive and marine retail stocks have not been spared, with share prices down 18.5% since the previous earnings results, on average.

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 $594.3 million, up 4.47% year on year, missing analyst expectations by 5.71%. It was a weak quarter for the company, with a miss of analysts' revenue estimates. The CEO called out "...a deteriorating selling environment" and how "the marine industry continues to transition back to historical norms and moderated pricing... the pace of this transition accelerated ahead of expectations, which pressured margins in the third quarter".

“In a deteriorating selling environment, our team did a great job driving a 4% increase in sales, maintaining flat dealership same-store sales and aggressively managing overall boat inventory. 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,” commented Austin Singleton, Chief Executive Officer at OneWater.

OneWater Total Revenue

OneWater delivered the weakest performance against analyst estimates of the whole group. The stock is down 32.8% since the results and currently trades at $24.91.

Is now the time to buy OneWater? Access our full analysis of the earnings results here, it's free.

Best Q2: MarineMax (NYSE:HZO)

Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE:HZO) sells boats, yachts, and other marine products.

MarineMax reported revenues of $721.8 million, up 4.84% year on year, beating analyst expectations by 7.42%. It was a decent quarter for the company, with an impressive beat of analysts' revenue and EPS estimates. 

MarineMax Total Revenue

MarineMax pulled off the strongest analyst estimates beat among its peers. The stock is down 16.7% since the results and currently trades at $32.95.

Is now the time to buy MarineMax? Access our full analysis of the earnings results here, it's free.

Monro (NASDAQ:MNRO)

Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Monro reported revenues of $310.8 million, down 5.24% year on year, missing analyst expectations by 3.69%. It was a weak quarter for the company, with underwhelming earnings guidance for the next quarter.

The stock is down 46.2% since the results and currently trades at $26.34.

Read our full analysis of Monro's results here.

Camping World (NYSE:CWH)

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE:CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Camping World reported revenues of $1.9 billion, down 12.4% year on year, missing analyst expectations by 3.54%. It was a weak quarter for the company, with revenue missing analysts' expectations, starting with a meaningful same store sales miss. The company also missed Wall Street's EPS expectations.

The stock is down 35.7% since the results and currently trades at $20.12.

Read our full, actionable report on Camping World here, it's free.

O'Reilly (NASDAQ:ORLY)

Serving both the do-it-yourself (DIY) customer and the professional mechanic, O’Reilly Automotive (ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

O'Reilly reported revenues of $4.07 billion, up 10.8% year on year, beating analyst expectations by 1.4%. It was a mixed quarter for the company, with revenue surpassing Wall Street's expectations, driven by a strong 9% same store sales growth that exceeded expectations. On the other hand, expenses were a bit higher than expected, leading to an operating profit miss. Additionally, CEO Greg Johnson will retire on January 31, 2024. The Board has selected Brad Beckham, the Company’s Co-President, to succeed Johnson as CEO.

The stock is down 7.11% since the results and currently trades at $898.62.

Read our full, actionable report on O'Reilly here, it's free.

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The author has no position in any of the stocks mentioned

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