BRP Inc. reports first quarter profit and revenue up from year ago [UPDATED]
By CP STAFF
Industry Manufacturing BRP manufacturing Quebec Sea-Doo Ski-DooMaker of Ski-Doo snowmobiles and Sea-Doo watercraft says the profit totalled $23.8 million.
BRP’s Sea-Doo recreational watercraft.
Photo: BRP
VALCOURT, Que.—BRP Inc. topped profit estimates in its latest quarter as acquisitions in its marine segment and strong sales of a new three-wheel vehicle drove a 17 per cent revenue boost compared with a year ago.
“We have experienced strong retail momentum in North America and Europe with all our sectors trending positively,” said chief executive Jose Boisjoli in a statement.
The maker of Ski-Doo snowmobiles, Sea-Doo watercraft and Can-Am wheeled vehicles said its net profit totalled $23.8 million or 25 cents per diluted share for the quarter ended April 30.
That compared with a net profit of $13.4 million or 13 cents per share in the same quarter last year, when BRP recorded a bigger foreign exchange loss on debt and lease liabilities.
On a normalized basis after excluding foreign exchange and other costs for both years, BRP said it earned 54 cents per share in the first quarter, up from 52 cents per share a year ago
Revenue amounted to $1.33 billion, up from $1.14 billion a year earlier.
Analysts on average had expected a normalized profit of 51 cents per share and $1.25 million of revenue for the quarter, according to Thomson Reuters Eikon.
“What more do you want?” said analyst Benoit Poirier of Desjardins Securities in a note to investors.
BRP is also launching a share buyback program, committing up to $300 million through a substantial issuer bid. Poirier estimated it would allow BRP to repurchase up to seven million shares and boost the share price by between $3 and $3.50.
“It will send a strong signal to the Street that the stock is undervalued,” he said.
Predicting continued growth in its year-round and marine units, BRP increased its revenue growth estimate for 2020 to between nine and 13 per cent above its 2019 financial year, compared with between seven and 11 per cent.
It also raised its 2020 estimated normalized earnings per share to between $3.55 and $3.75, up five cents at both ends of the range.
