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.
Nicole Hicks a graduate of UFT. She’s based in Toronto but travels much of the year. Nicole has written for NPR, Motherboard, MSN Money, and the Huffington Post. Nicole is a financial reporter, focusing on technology, national security, and policing.