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.
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 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.
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.
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.
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.
Looking for alternatives to Arctic Cat? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Arctic Cat to My Watchlist.