Despite announcing a profit and lower revenues for its most recent quarter, BRP surpassed analysts’ expectations and its stock jumped nearly 10% on Wednesday.
The manufacturer of the Ski-Doo snowmobiles posted a shareholder profit of $115.2 million, or $1.12 per share, for its fourth quarter ended January 31. In comparison, he had earned $136.6 million, or $1.22 a share, for the same quarter a year earlier.
Excluding non-recurring items, BRP’s earnings were $0.96 per share, compared to $1 per share for the same period a year earlier.
Valcourt’s sales reached $1.26 billion in the most recent quarter, up from $1.31 billion a year ago.
Despite the decrease compared to the previous year, these results exceeded analysts’ expectations. These were adjusted earnings per share of $ 0.91 and revenues of $1.24 billion, according to forecasts collected by Thomson Reuters.
Investors welcomed the results and BRP shares gained $4.31, or 9.5 per cent, on the Toronto Stock Exchange, closing at $49.88.
“For fiscal 2019, we continue to aim for rapid growth for seasonal and all-season categories,” BRP President and CEO José Boisjoli said in a statement.
“In the current economic environment, I am confident that we will achieve our objectives for fiscal 2019, including revenue growth of 5-8% and normalized earnings per share of 20-25%. ”
BRP further stated that it would pay a dividend of $0.09 per share, up from $0.01, or 12.5%, compared to the previous dividend.
Henry Lares is still early into his career as tech reporter but has already had his work published in many major publications including Tech Crunch and the Huffington Post. In regards to academics, Henry earned an engineering degree from Apex Technical School. Henry has a passion for emerging technology and covers upcoming products and breakthroughs in science and tech.