BRP Inc (NASDAQ: DOOO) stock fell 4.16% on May 30th, 2019 and continued its bearish momentum on May 31st, 2019 (as of 11:59 am GMT-4; Source: Google finance)
The company has reported the net income of $23.8 million, an increase of $10.4 million. The company has posted the normalized net income of $52.7 million, a decrease of $0.8 million.
DOOO in the first quarter of FY 19 has reported the adjusted earnings per share of 54 cents, beating the analysts’ estimates for the adjusted earnings per share of 51 cents, according to Thomson Reuters Eikon. The company had reported the adjusted revenue growth of 17.3 percent to $1.33 billion in the first quarter of FY 19, beating the analysts’ estimates for revenue of $1.25 billion. The revenue growth is mainly due to higher wholesale of Year-Round Products. The increase includes a favourable foreign exchange rate variation of $13 million. The Company’s North American retail sales for the three-month period ended April 30, 2019 rose by 10% compared with the three-month period ended April 30, 2018, mainly due to an increase in 3WV following the introduction of the Can-Am Ryker.
Gross profit grew by $19.0 million, or 6.7%, to $300.6 million for the first quarter 2019 compared with $281.6 million for the corresponding period 2018. Gross profit margin percentage declined by 230 basis points to 22.5% from 24.8% for the three-month period ended April 30, 2018. The decrease was mainly due to higher commodity, production and distribution costs and an unfavourable product mix of 3WV sold, partially offset by higher volume of 3WV and PAC sold.
DOOO is also launching a share buyback program, committing up to $300 million through a substantial issuer bid.
DOOO has raised 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 has also raised its 2020 estimated normalized earnings per share to be between $3.55 and $3.75, up five cents at both ends of the range.
Meanwhile, DOOO has recently entered into a definitive agreement to acquire 80% of the outstanding shares of Telwater Pty, Ltd, which is Australia’s leading manufacturer of aluminum boats and trailers. The Company also announced the authorization of a substantial issuer bid to purchase for cancellation up to $300 million of the Company’s subordinate voting shares. The SIB will be funded with a combination of cash on hand, drawing on existing credit facilities and planned incremental term loan issuance.