Arctic Cat Misses on Both Revenue and Earnings

Arctic Cat (Nasdaq: ACAT  ) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Arctic Cat missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.

Gross margins grew, operating margins grew, net margins were steady.

Revenue details
Arctic Cat logged revenue of $218.0 million. The seven analysts polled by S&P Capital IQ predicted net sales of $224.4 million on the same basis. GAAP reported sales were 5.3% higher than the prior-year quarter's $207.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.30. The seven earnings estimates compiled by S&P Capital IQ averaged $1.33 per share. GAAP EPS of $1.30 for Q3 were 41% higher than the prior-year quarter's $0.92 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 23.3%, 20 basis points better than the prior-year quarter. Operating margin was 12.7%, 10 basis points better than the prior-year quarter. Net margin was 8.2%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $113.9 million. On the bottom line, the average EPS estimate is -$0.43.

Next year's average estimate for revenue is $678.7 million. The average EPS estimate is $2.85.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 76 members out of 109 rating the stock outperform, and 33 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 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 $47.00.

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Seth Jayson owned shares of the following at the time of publication: Arctic Cat. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere


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