Recreational boats manufacturer Malibu Boats (NASDAQ:MBUU) will be reporting results tomorrow before the bell. Here's what to look for.

Malibu Boats missed analysts' revenue expectations by 4.1% last quarter, reporting revenues of $211.1 million, down 37.7% year on year. It was a slower quarter for the company, with a miss of analysts' boats sold estimates.

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

This quarter, analysts are expecting Malibu Boats's revenue to decline 44.9% year on year to $206.5 million, a reversal from the 9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.48 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. Malibu Boats has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 7.2% on average.

Looking at Malibu Boats's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Brunswick's revenues decreased 21.7% year on year, meeting analysts' expectations, and Harley-Davidson reported a revenue decline of 3.3%, topping estimates by 28.4%. Brunswick traded down 5.8% following the results while Harley-Davidson was also down 11.9%.

Read our full analysis of Brunswick's results here and Harley-Davidson's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 5.9% on average over the last month. Malibu Boats is down 18.7% during the same time and is heading into earnings with an average analyst price target of $49.4 (compared to the current share price of $34.72).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.