What's Going On With Recreational Vehicle Maker BRP Shares Today?
Portfolio Pulse from Nabaparna Bhattacharya
BRP Inc. (NASDAQ:DOOO) reported Q4 FY24 earnings with adjusted EPS of $1.82, missing expectations of $1.92, and revenues of $1.992 billion, below the $2.05 billion forecast. Year-over-year, revenues fell 12.5% due to lower volume across most product lines, impacted by late shipments, softening demand, and unfavorable winter conditions. Gross profit and margin, as well as Normalized EBITDA, also decreased. Despite this, BRP declared a quarterly dividend and provided FY25 revenue and EPS guidance below estimates, expecting a significant drop in Q1 2025 EBITDA. Shares rose 6.96% to $68.08.
March 28, 2024 | 2:16 pm
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POSITIVE IMPACT
BRP Inc. reported lower-than-expected Q4 FY24 earnings and revenue, with a significant year-over-year decline. Despite this, the company declared a dividend and provided future guidance below estimates, yet shares increased by 6.96%.
The short-term impact on BRP Inc.'s stock (DOOO) is likely positive despite the earnings miss, as the share price increase suggests investor optimism. This could be due to the dividend declaration or future market share growth plans. However, the missed earnings and revenue forecasts, along with the expected decrease in EBITDA, could introduce volatility.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100