BRP Inc. topped expectations Wednesday as it reported its third-quarter profit rose compared with a year ago and raised its guidance for its full financial year.
The Ski-Doo and Sea-Doo maker said it now expects normalized earnings per share between $5.00 and $5.25 for the year, up from earlier guidance for between $3.65 and $3.95.
On a conference call with financial analysts, BRP CEO Jose Boisjoli said the results were driven by strong demand worldwide, with sales growth in every region except Europe, the Middle East and Africa, which had a shortage of inventory.
“Given the increased popularity of our product, we feel fortunate to be where we are during this time of international instability,” Boisjoli said.
“It has been an exceptional period and it’s not over yet.”
BRP has seen its best start to the snowmobile season in five years, with retail sales of Ski-Doos up more than 20 per cent this season, Boisjoli added.
BRP’s raised guidance came as the company reported net income of $198.7 million or $2.22 per diluted share for its quarter ended Oct. 31, up from $135.3 million or $1.49 per diluted share in the same quarter last year.
Revenue totalled $1.67 billion, up from $1.64 billion a year ago.
On a normalized basis, BRP says it earned $2.13 per diluted share in its latest quarter, up from a normalized profit of $1.51 per diluted share a year earlier.
Analysts on average had expected an adjusted profit of $1.41 for the quarter and $1.60 billion in revenue, according to financial data firm Refinitiv.
This report by The Canadian Press was first published Nov. 25, 2020.
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Jon Victor, The Canadian Press