VALCOURT, Quebec - BRP Inc . (TSX:DOO) (NASDAQ:DOOO) shares jumped over 7% on Friday after the powersports vehicle maker reported third quarter results and guidance that exceeded analyst estimates.
The company posted adjusted earnings per share of C$1.16 for the quarter ended October 31, significantly beating the consensus forecast of C$0.57. Revenue came in at C$1.96 billion, also surpassing expectations of C$1.39 billion.
While revenue declined 17.5% YoY due to softer demand and efforts to reduce dealer inventory levels, BRP (NASDAQ:DOOO)'s results were better than feared given the challenging macroeconomic environment.
Looking ahead, BRP provided an upbeat outlook, forecasting full-year fiscal 2025 adjusted EPS of C$4.25 to C$4.75. This guidance range is well above the C$2.24 analysts were projecting on average.
"Our disciplined execution allowed us to deliver results above expectations, despite the macroeconomic context and the promotional intensity in the industry," said José Boisjoli, President and CEO of BRP.
The company said it has made progress on reducing North American dealer inventory levels, achieving its objective one quarter ahead of plan. BRP remains focused on managing production and increasing promotional spend to maintain its competitive position.
With its strong product lineup and improved inventory position, management believes BRP is "uniquely placed to capture opportunities when the market rebounds.
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