BRP Inc (NASDAQ:DOOO) stock fell 2.96% (As on March 24, 11:15:32 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Retail sales up for Powersports products by 21% compared to the same period last year, and market share gains for SSV in North America. Normalized EBITDA of $528.0 million, an increase of $111.6 million or 27% compared to the same period last year. The increase in revenues for the three-month period ended January 31, 2023 compared to Fiscal 2022 is mainly explained by a strong consumer demand. It was supported by the additional available capacity such as the new Juarez-3 facility dedicated to SSV production, successful new product introductions, and the final completion of its substantially completed units available for retail allowing to achieve record high revenues during the fourth quarter of Fiscal 2023. The supply chain is gradually returning to a more stable level, however the company continues to incur production inefficiencies resulting in higher production costs. Most Powersports product lines favorably contributed to the strong revenue growth compared to the fourth quarter of Fiscal 2022, resulting in higher profitability than last year.

DOOO in the fourth quarter of FY 22 has reported the adjusted earnings per share of $2.86, beating the analysts’ estimates for the adjusted earnings per share of $2.75, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 31 percent to $2.28 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue by 5.59%. The revenue increase was primarily driven by a higher wholesale volume across all product lines due to strong retail demand, and the introduction of the Sea-Doo pontoon.

Moreover, Revenues from Year-Round Products increased by $401.7 million, or 47.1%, to $1,254.8 million for the three-month period ended January 31, 2023, compared to $853.1 million for the corresponding period ended January 31, 2022. Revenues from Seasonal Products increased by $270.6 million, or 25.8%, to $1,319.5 million for the three-month period ended January 31, 2023, compared to $1,048.9 million for the corresponding period ended January 31, 2022. Revenues from the Marine segment decreased by $10.5 million, or 7.6%, to $128.5 million for the three-month period ended January 31, 2023, compared to $139.0 million for the corresponding period ended January 31, 2022.

The Company is well positioned to continue its growth with revenues expected to increase in the range of 9% to 12% compared to fiscal year 2023; and Normalized diluted earnings per share expected in the range of $12.25 – $12.75 or resulting in an increase of 2% to 6% compared to fiscal 2023.