What's Going On With Recreational Vehicle Maker BRP Shares Today?

BRP Inc. DOOO reported fourth quarter FY24 adjusted earnings per share of $1.82, missing the street view of $1.92.

Quarterly revenues of $1.992 billion missed the analyst consensus of $2.05 billion. Revenues fell 12.5% year over year.

The revenue decrease was primarily due to a lower volume across most product lines, explained by late shipments of Seasonal Products for the same period last fiscal year, softening consumer demand, primarily in International markets, higher sales programs across most product lines, and an unfavorable winter conditions, which impacted the Snowmobile season for PA&A. 

Gross profit decreased 17.1% year over year. Gross profit margin percentage decreased by 130 basis points to 24.3% from 25.6%.

Normalized EBITDA decreased by 23.4% primarily due to lower gross profit and higher operating expenses.

On March 27, the firm declared a quarterly dividend of C$0.21 per share, which will be paid on April 22, 2024, to shareholders of record at the close of business on April 8, 2024.

Outlook: The company plans to maintain its market share growth in the Powersports industry and reduce its network inventory, leading to FY25 revenue guidance of approximately $6.734 billion-$7.031 billion (estimate: $7.38 billion).

Normalized EPS is expected to be $5.37-$6.11 (estimate: $6.67).

The company expects first-quarter 2025 Normalized EBITDA to be down approximately 35% versus the same three-month period last fiscal year.

Price Action: DOOO shares are trading higher by 6.96% to $68.08 on the last check Thursday.

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