BRP Q1 Results Beat Expectations Despite Tariff Impact
BRP's Q1 Performance
Canadian powersports manufacturer BRP reported a 29.5% year-over-year revenue increase in fiscal Q1, beating analyst expectations. Adjusted EPS also surpassed estimates. However, net income declined 20.9% due to foreign exchange and higher tax expenses.
Key Growth Drivers
The company attributed revenue growth primarily to higher shipments of off-road vehicles and personal watercraft, as well as a favorable product mix from new models. Gross profit and margin improved due to higher volumes, lower sales programs, and favorable pricing, partially offset by global tariffs.
Retail Sales and Outlook
North American retail sales fell 7% due to lower snowmobile volumes and PWC market share losses. BRP expects FY27 revenue between C$9.125 billion and C$9.375 billion, with normalized diluted EPS of C$3.00 to C$3.50.
Analyst Ratings and Stock Valuation
The average analyst rating is 'buy', with a median 12-month price target of C$99.50, implying 23.9% upside from the last close. The stock trades at 15 times next 12-month earnings, down from 17 times three months ago.
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