The 10-second takeaway
For the quarter ended June 30 (Q1), Arctic Cat missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Margins grew across the board.
Arctic Cat recorded revenue of $120.8 million. The seven analysts polled by S&P Capital IQ expected sales of $126.3 million on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $111.3 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 $0.40. The six earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. GAAP EPS of $0.40 for Q1 were 186% higher than the prior-year quarter's $0.14 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 24.1%, 390 basis points better than the prior-year quarter. Operating margin was 7.0%, 420 basis points better than the prior-year quarter. Net margin was 4.5%, 270 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $248.9 million. On the bottom line, the average EPS estimate is $1.97.
Next year's average estimate for revenue is $755.8 million. The average EPS estimate is $3.28.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 85 members out of 120 rating the stock outperform, and 35 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 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 $50.50.
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