BRP Stock Gains On Raised FY22 EPS Outlook

BRP Inc DOOO reported second-quarter FY22 sales growth of 54.4% year-on-year, to C$1.9 billion.
Revenues from Year-Round Products increased 53.8% Y/Y, Seasonal Products rose 78%, and Powersports PA&A and OEM Engines gained 18.9%.
The gross profit rose 129.5% Y/Y to C$570.1 million, with the margin expanding 980 basis points to 29.9%.
Operating expenses increased 22.7% Y/Y to C$231.7 million.
Normalized EBITDA of C$415 million increased 93.7% Y/Y.
Normalized EPS of C$2.89 increased 154% Y/Y.
"These excellent results are fueled by continued strong demand, market share gains, traction with new entrants as well as our teams' ability to manage through a challenging supply chain environment," said CEO José Boisjoli.
Outlook: BRP raised FY22 Normalized EPS guidance to C$8.25 - C$9.75 (prior C$7.75 - C$8.50).
BRP expects total company revenues to rise 27% - 35% (prior 28% - 33%).
Price Action: DOOO shares traded higher by 7.95% at $90.87 on the last check Thursday.

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