OneWater (ONEW) Q1 Earnings Report Preview: What To Look For

Boat and marine products retailer OneWater Marine (NASDAQ:ONEW) will be announcing earnings results tomorrow before market open. Here's what you need to know.

OneWater met analysts' revenue expectations last quarter, reporting revenues of $364 million, flat year on year. It was a slower quarter for the company, with a miss of analysts' revenue and earnings estimates.

Is OneWater a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting OneWater's revenue to decline 4.7% year on year to $499.9 million, a reversal from the 18.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.68 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. OneWater has missed Wall Street's revenue estimates four times over the last two years.

Looking at OneWater's peers in the automotive and marine retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. MarineMax delivered year-on-year revenue growth of 2.2%, missing analysts' expectations by 1.2%, and Genuine Parts reported flat revenue, falling short of estimates by 1%. MarineMax traded down 6.8% following the results while Genuine Parts was up 12.7%.

Read our full analysis of MarineMax's results here and Genuine Parts's results here.

Inflation fears have put pressure on growth stocks, and while some of the automotive and marine retail stocks have fared somewhat better, they have not been spared, with share prices down 8% on average over the last month. OneWater is down 23% during the same time and is heading into earnings with an average analyst price target of $32.3 (compared to the current share price of $20.71).

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