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Arctic Cat Increases Sales but Misses Revenue Estimate

By Seth Jayson – Updated Apr 10, 2017 at 1:17PM

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Just the facts, Fool.

Arctic Cat (Nasdaq: ACAT) reported earnings on May 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), Arctic Cat missed estimates on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. GAAP loss per share contracted.

Margins increased across the board.

Revenue details
Arctic Cat logged revenue of $113.2 million. The seven analysts polled by S&P Capital IQ expected a top line of $121.2 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $98.5 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 -$0.38. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.40 per share. GAAP EPS were -$0.38 for Q4 compared to -$0.49 per share for the prior-year quarter.

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 12.0%, 40 basis points better than the prior-year quarter. Operating margin was -7.8%, 200 basis points better than the prior-year quarter. Net margin was -4.5%, 180 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $119.7 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $723.6 million. The average EPS estimate is $3.27.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 77 members out of 111 rating the stock outperform, and 34 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 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 $46.33.

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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. The Motley Fool owns shares of Arctic Cat. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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