A research note has been provided to Powersports Business by BMO Capital Markets analyst Gerrick Johnson with a look at expectations for BRP’s fiscal Q1 results, scheduled for release on Thursday morning.
Johnson reports that “we expect FY1Q21 (ended April) sales to decline -6% to $1.25 billion. The Street consensus is for sales to decrease -15% to $1.13 billion. As a reminder, on March 30, BRP announced it was temporarily suspending or slowing down all of its powersports and marine manufacturing operations.
“We expect the following performance from each segment:
“Year-Round Products. $594 million (-5%). We expect SxS sales will be flat at $245 million but ATV sales will decline -15% year over year to $149 million. We expect Spyder Roadster sales of $200 million, down -3% year over year.
“Seasonal Products. $338 million (-10%); PWC sales of $333 million, down -10% yoy.
“Powersports Parts, Accessories, Clothing & OEM Engines. $180 million (-3%).
Marine Engine, Boats, and PAC. $143 million (-3%). We expect Evinrude (-9%), growth in Marine PAC (+3%), and flat boat sales.
“We expect gross margin will contract 70 bps yoy to 21.8% from 22.5%. The Street consensus is 20.8%.
“DOO has not yet issued FY2021 guidance but stated it expects to do so when it reports FY1Q21 results. We expect EPS of $2.00 on sales of $4.98 billion, while the Street expects EPS of $1.17 on sales of $4.76 billion.”
— Dave McMahon, editor, dmcmahon at powersportsbusiness.com