BRP Inc. Q3 Net Income Declines, Revenues Down 8.9%; Adjusts FY Normalized EPS Guidance
BRP Inc. (DOO.TO, DOOO) reported that its third quarter net income decreased to C$63.1 million from C$141.6 million, prior year. Earnings per share was C$0.81 compared to C$1.76. The company said the decrease was primarily due to a lower operating income, an unfavourable foreign exchange rate variation on the U.S. denominated long-term debt and an increase in financing costs, partially offset by a lower income tax expense and an increase in financing income. Normalized EBITDA decreased 8.8%, to C$444.9 million. Normalized earnings per share was C$3.06 compared to C$3.64. On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of C$3.07, for the quarter. Analysts’ estimates typically exclude special items.
Third quarter revenues decreased 8.9%, to C$2.47 billion from a year ago. The company said the decrease was primarily due to a lower volume of PWC, 3WV, SSV and Sea-Doo pontoon sold, the U.S.-Mexico border slowdown affecting ORV deliveries, the softening in industry demand in the International market, and higher sales programs across all product lines except PWC. Analysts on average had estimated C$2.65 billion in revenue.
BRP Inc. adjusted full year-end guidance for normalized EPS downward, and now projects in a range of C$11.10 to C$11.35.
On November 29, 2023, the Board declared a quarterly dividend of C$0.18 per share for holders of multiple voting shares and subordinate voting shares. The dividend will be paid on January 12, 2024 to shareholders of record at the close of business on December 29, 2023.
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