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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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. Try any of our Foolish newsletter services free for 30 days. 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.