The 10-second takeaway
For the quarter ended June 30 (Q1), Arctic Cat beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded. The profit was a surprise, as analysts had predicted a loss.
Margins grew across the board.
Arctic Cat recorded revenue of $111.3 million. The seven analysts polled by S&P Capital IQ looked for a top line of $99.0 million on the same basis. GAAP reported sales were 49% higher than the prior-year quarter's $74.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.14. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.08 per share. GAAP EPS were $0.14 for Q1 compared to -$0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.2%, 110 basis points better than the prior-year quarter. Operating margin was 2.8%, 760 basis points better than the prior-year quarter. Net margin was 1.8%, 490 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $225.4 million. On the bottom line, the average EPS estimate is $1.77.
Next year's average estimate for revenue is $671.2 million. The average EPS estimate is $2.76.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 73 members out of 107 rating the stock outperform, and 34 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Arctic Cat a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arctic Cat is outperform, with an average price target of $46.17.
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