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Investing.com -- BRP Inc. (NASDAQ:DOOO) shares jumped 7.8% after the powersports vehicle manufacturer reported second-quarter earnings that significantly exceeded analyst expectations, with adjusted EPS of C$0.92 beating estimates by C$0.59 and revenue of C$1.89 billion surpassing the consensus of C$1.29 billion.
The Quebec-based maker of Ski-Doo snowmobiles and Sea-Doo watercraft saw its revenue increase 4.3% YoY to C$1.89 billion, despite facing challenges in the recreational vehicle market.
The company’s net income surged 36% to C$57.1 million compared to the same period last year, demonstrating strong operational performance despite macroeconomic headwinds.
"We are pleased with our second-quarter results which, in the macroeconomic context, were better than expected," said José Boisjoli, President and CEO of BRP. "We are coming off a successful dealer event, during which we unveiled a significant number of industry-leading products and witnessed a strong upswing in dealer sentiment."
Year-Round Products, which represent 59% of quarterly revenue, saw a 13.1% increase to C$1.11 billion, while Seasonal Products declined 13.3% to C$469.7 million. North American retail sales decreased 11% compared to last year, primarily due to PWC market share loss and lower SSV non-current unit availability.
Looking ahead, BRP issued full-year guidance with revenue expected between C$8.1 billion and C$8.3 billion, and normalized diluted EPS between C$4.25 and C$4.75, above the analyst consensus of C$2.52. The company maintained its quarterly dividend of C$0.215 per share.
BRP’s gross profit margin slightly decreased to 21.1% from 22.0% in the same quarter last year, as favorable pricing and production efficiencies were offset by the impact of global tariffs, particularly on Parts, Accessories and Apparel.
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