BRP Down Over 3% After Q1 Earnings - Here's Why
Portfolio Pulse from Nabaparna Bhattacharya
BRP Inc. (NASDAQ:DOOO) shares fell over 3% in premarket trading after the company cut its FY25 guidance. Despite beating Q1 earnings and revenue estimates, the company faces challenges such as lower product volumes, dealer profitability pressures, and a competitive landscape. BRP adjusted its production to manage inventory levels and expects a significant drop in Q2 EBITDA.
May 31, 2024 | 1:30 pm
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BRP Inc. shares fell over 3% in premarket trading after the company cut its FY25 guidance. Despite beating Q1 earnings and revenue estimates, the company faces challenges such as lower product volumes, dealer profitability pressures, and a competitive landscape. BRP adjusted its production to manage inventory levels and expects a significant drop in Q2 EBITDA.
The stock price is likely to decline in the short term due to the lowered FY25 guidance, pressures on dealer profitability, and a competitive landscape. Despite beating Q1 earnings and revenue estimates, the negative outlook and expected drop in Q2 EBITDA are significant concerns for investors.
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