BMO analyst models BRP side-by-side revenues rising 40 percent in fiscal Q1

With BRP scheduled to announce its fiscal Q1 2022 (April) earnings on June 3, BMO Capital Markets analyst Gerrick Johnson has provided Powersports Business readers with expectations for the call.

Johnson reports that BMO expects “that BRP’s (DOO) FY1Q22 financial results will increase significantly year over year, fueled by ongoing strong retail demand for outdoor recreational products. In fact, we think the only ceiling on retail performance in the quarter would be product availability. We anticipate the company to increase the low end of its FY2022 guidance ranges but not necessarily the top.”

Johnson also notes that BMO expects BRP’s “FY1Q22 revenue to increase +31% to $1.62 billion, below the Street consensus of $1.65 billion (+34%). We expect North American powersports retail to be up +30% in the quarter (ORV +25%). DOO guided to retail increasing +HSD%, or over +10% excluding snowmobiles.”

By segment, Johnson and BMO expect the following performance from each segment:

“Year-Round Products. $870 million (+36%), versus consensus at $813 million (+27%). We model SSV +40%, ATV +37%, and Three-wheeled vehicle +27% yoy.

Seasonal Products. $425 million (+32%), below consensus at $454 million (+41%). We model PWC +26% and snowmobile +400%.

“Powersports Parts, Accessories, Clothing, & OEM Engines. $205 million (+30%), in line with consensus at $208 million (+32%).

“Marine Engine, Boats, and PAC. $115 million (+5%), compared with consensus at $107 million (-2%). We model Evinrude -100%, boats +243%, and Marine PAC +30%.

“We expect gross margin to expand +790 bps yoy to 27.0% from 19.1% owing to higher production levels, overhead absorption, and lower promotions. The consensus is for +410 basis points to 23.2%.”