What Happened?
Shares of recreational boats manufacturer Malibu Boats (NASDAQ:MBUU) fell 2.8% in the afternoon session after a significant downward revision of U.S. job creation data raised concerns about the health of the economy.
The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March 2025 than initially estimated. This revision brings the average monthly job gains during that period down significantly, suggesting a cooler labor market. The downgrades were widespread across various service sectors. The largest revisions were seen in leisure and hospitality, which added 176,000 fewer jobs than first reported, followed by professional and business services and retail. Such data is closely watched by investors and economists as it can influence the Federal Reserve's decisions on interest rates.
JPMorgan Chase CEO Jamie Dimon warned that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Malibu Boats? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Malibu Boats’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock dropped 14.6% on the news that the company reported second-quarter results where a revenue beat was overshadowed by a miss on Wall Street's profit expectations. The maker of performance sports boats posted revenue of $207 million, exceeding analysts' forecasts of $196.4 million. However, the company's profitability fell short, with adjusted earnings of $0.42 per share missing the consensus estimate of $0.46. Furthermore, its adjusted EBITDA of $19.66 million also came in below Wall Street's expectation of $21.32 million. The stronger-than-expected sales were not enough to please investors, who focused on the weaker-than-anticipated profitability, signaling a challenging quarter for the company.
Malibu Boats is down 11.9% since the beginning of the year, and at $32.07 per share, it is trading 29.2% below its 52-week high of $45.30 from November 2024. Investors who bought $1,000 worth of Malibu Boats’s shares 5 years ago would now be looking at an investment worth $633.73.
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