Canada's BRP Q4 revenue beats estimates on higher shipments
Overview
Canada powersports maker's fiscal Q4 revenue rose 16%, beating analyst expectations
Adjusted EPS for fiscal Q4 beat consensus, driven by favourable ORV product mix and higher shipments
Company announced C$50.3 mln share buyback and raised quarterly dividend to C$0.25 per share
Outlook
BRP sees FY27 total company revenue at C$8.9 bln to C$9.15 bln
Company expects FY27 normalized EPS of C$5.50 to C$6.50
BRP expects Q1 FY27 normalized EBITDA up about 40% vs prior year
Result Drivers
ORV PRODUCT MIX - Revenue growth was primarily driven by a favourable ORV product mix and introduction of new models and features
HIGHER SHIPMENTS - Increased shipments of ORV and PWC contributed to revenue growth
MARKET SHARE GAINS - North American retail sales rose 12%, supported by market share gains in ORV and snowmobiles
Company press release: ID:nCNWW2YkTa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | C$2.46 bln | C$2.33 bln (17 Analysts) |
Q4 Adjusted EPS | Beat | C$2.21 | C$2.03 (17 Analysts) |
Q4 EPS |
| C$0.63 |
|
Q4 Adjusted Net Income |
| C$163.30 mln |
|
Q4 Net Income |
| C$45.80 mln |
|
Q4 Adjusted EBITDA |
| C$363.80 mln |
|
Q4 Gross Profit |
| C$553.60 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the recreational products peer group is "buy"
Wall Street's median 12-month price target for BRP Inc is C$118.00, about 31.8% above its March 25 closing price of C$89.53
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago
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