The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Arctic Cat missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins expanded across the board.
Arctic Cat booked revenue of $229.0 million. The seven analysts polled by S&P Capital IQ looked for sales of $232.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $204.8 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 $1.80. The seven earnings estimates compiled by S&P Capital IQ averaged $1.79 per share. GAAP EPS of $1.80 for Q2 were 57% higher than the prior-year quarter's $1.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.0%, 10 basis points better than the prior-year quarter. Operating margin was 16.9%, 80 basis points better than the prior-year quarter. Net margin was 10.9%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $229.2 million. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $683.7 million. The average EPS estimate is $2.86.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 72 members out of 108 rating the stock outperform, and 36 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Arctic Cat a green thumbs-up, and eight 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 $50.00.
With hundreds of companies out there vying with Arctic Cat for shoppers' dollars, strong brands matter, and they can provide growth for even boring, mature companies -- as long as they're the right ones. That's why we've compiled a special report on "3 American Companies Set to Dominate the World." Click here for instant access to this free report.
- Add Arctic Cat to My Watchlist.