MasterCraft’s stock set to rally after narrower-than-expected loss, upbeat sales outlook

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Shares of MasterCraft Boat Holdings Inc. were indicated up over 1% in premarket trading Wednesday, after the recreational powerboat maker reported a narrower-than-expected fiscal fourth-quarter loss and provided an upbeat sales outlook. The net loss for the quarter to June 30 narrowed to $2.8 million, or 15 cents a share, from $10.1 million, or 54 cents a share, in the year-ago period. Excluding non-recurring items, the adjusted loss per share was 10 cents, beating the FactSet loss consensus of 26 cents. Sales for the quarter, which is historically the lowest of the year, dropped 58% to $51.1 million, due primarily to lost production as a result of COVID-19-related shutdowns, but was above the FactSet consensus of $36.8 million. Dealer inventories at the end of the fiscal year were 40% to 50% lower than a year ago. For the first quarter, the company expects sales to be down in the low-to-mid teens percentage range, while the current FactSet consensus of $86.2 million implies a 21.5% decline. The stock has soared 42.6% year to date through Tuesday, while the S&P 500 has gained 3.1%.
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