Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at OneWater (NASDAQ: ONEW) and the best and worst performers in the automotive and marine retail industry.
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 mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 2.5% on average since the latest earnings results.
OneWater (NASDAQ: ONEW)
A public company since early 2020, OneWater Marine (NASDAQ: ONEW) sells boats, yachts, and other marine products.
OneWater reported revenues of $552.9 million, up 1.9% year on year. This print exceeded analysts’ expectations by 4%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA and gross margin estimates.
“The quarter highlighted our ability to outperform broader industry trends, despite macroeconomic uncertainty. As expected, a highly competitive environment and significant promotional activity across the industry continues to pressure margins,” commented Austin Singleton, Chief Executive Officer at OneWater.
OneWater achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 8.3% since reporting and currently trades at $15.78.
Read our full report on OneWater here, it’s free.
Best Q2: 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 $301 million, up 2.7% year on year, outperforming analysts’ expectations by 1.7%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $18.15.
Is now the time to buy Monro? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $341.3 million, down 1.5% year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
As expected, the stock is down 24.3% since the results and currently trades at $33.69.
Read our full analysis of America's Car-Mart’s results here.
Lithia (NYSE: LAD)
With a strong presence in the Western US, Lithia Motors (NYSE: LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.
Lithia reported revenues of $9.58 billion, up 3.8% year on year. This result missed analysts’ expectations by 2%. More broadly, it was actually a strong quarter as it recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.
The stock is up 8.1% since reporting and currently trades at $332.09.
Read our full, actionable report on Lithia here, it’s free.
CarMax (NYSE: KMX)
Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE: KMX) is the largest automotive retailer in the United States.
CarMax reported revenues of $7.55 billion, up 6.1% year on year. This print was in line with analysts’ expectations. It was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA and gross margin estimates.
The stock is down 6.2% since reporting and currently trades at $60.34.
Read our full, actionable report on CarMax here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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