Analyst provides BRP quarterly earnings outlook

With BRP reporting fiscal Q3 2021 earnings on Wednesday, BMO Capital Markets analyst Gerrick Johnson has provided Powersports Business with a research note related to expected results.

Johnson reports “it’s well known that retail demand has remained strong” and that BMO estimates North American off-road vehicle retail sales being up 25% for the quarter, with three-wheel vehicle sales up 60%. Johnson adds that BMO anticipates “investors will be more focused on how quickly DOO can refill a depleted dealer channel, the state of its supply chain, and management’s thoughts on C2021 demand.”

BMO expects the following revenue from each segment:

• Year-Round Products: $845 million (+17%) vs Street of $752 million (+4%), with SSV +14% to $575 million and ATV +19% to $250 million. We think BRP’s ORV retail was +25%, with better performance from ATVs than SSVs. We expect Spyder revenue of $20 million, up from $10 million in FY3Q20.
• Seasonal Products: $550 million (-1%) vs Street of $517 million (-7%), with PWC +11% to $100 million and snowmobile -3% to $450 million.
• Powersports Parts, Accessories, Clothing & OEM Engines: $245 million (+9%) vs Street of $237 million (+5%).
• Marine Engine, Boats, and PAC: $95 million (-31%) vs Street of $89 million (-36%), with Evinrude -100% owing to its discontinuation, but +6% growth in Marine PAC and +11% growth in boats.

— Dave McMahon, editor, dmcmahon at powersportsbusiness.com