Taking Stock of Marine Products’ Risk Factors

Marine Merchandise Corp. (MPX) gives premium branded Chaparral sterndrive and outdrive pleasure boats and Robalo outboard sportfishing boats. Final week, Marine Merchandise posted sturdy Q2 outcomes.

Let’s check out the monetary efficiency of the corporate and what has modified in its key danger components that traders ought to concentrate on.

On the again of 59% development within the variety of models offered, together with a 7.5% improve in common promoting worth, Marine Merchandise’ income elevated 64.8% year-over-year to $67.26 million.

Increased manufacturing and favorable mannequin combine offset a rise in promoting, common and administrative (SG&A) bills of the corporate, which, in flip, helped it improve working revenue by 255% year-over-year to $7.36 million. Consequently, earnings per share of the corporate surged to $0.17 versus $0.05 a yr in the past.

The President and CEO of Marine Merchandise, Richard A. Hubbell, stated, “The terribly excessive demand for our merchandise has continued unabated, and we anticipate it to stay so past the 2021 retail promoting season.” (See Marine Products stock chart on TipRanks) 

Now, let’s take a look at what has modified within the firm’s key danger components profile.

In keeping with the brand new Tipranks’ Risk Factors tool, Marine Merchandise’ fundamental danger class is Manufacturing, which accounts for 33% of the whole 18 dangers recognized. Since June, the corporate has added one key danger issue.

Beneath the Manufacturing class, the corporate acknowledges that disruptions to its provide chain have had an adversarial influence on its working and monetary outcomes. If marine Merchandise isn’t in a position to mitigate the probability or potential influence of such disruptions, its enterprise and monetary situation could also be negatively affected.

The Manufacturing danger issue’s sector common is at 19%, in comparison with Marine Merchandise’ 33%. Shares are up 10% thus far this yr.

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