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.
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 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.
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.)
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.
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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