BRP (NASDAQ:DOOO) Shares Gap Up After Better-Than-Expected Earnings

BRP Inc. (NASDAQ:DOOO) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $70.77, but opened at $76.36. BRP shares last traded at $75.4140, with a volume of 194,918 shares.

The company reported $1.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.88 by $0.27. The company had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.50 billion. BRP had a return on equity of 74.63% and a net margin of 0.45%.The company’s quarterly revenue was up 14.0% compared to the same quarter last year. BRP has set its FY 2026 guidance at 3.600-3.600 EPS.

BRP Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 14th. Stockholders of record on Wednesday, December 31st will be issued a $0.215 dividend. The ex-dividend date of this dividend is Wednesday, December 31st. This represents a $0.86 dividend on an annualized basis and a dividend yield of 1.1%. BRP’s dividend payout ratio is presently -258.33%.

Analyst Ratings Changes

DOOO has been the subject of a number of research analyst reports. Zacks Research downgraded shares of BRP from a “strong-buy” rating to a “hold” rating in a report on Monday, November 10th. National Bankshares upgraded BRP from a “sector perform” rating to an “outperform” rating in a research report on Thursday. Loop Capital initiated coverage on BRP in a report on Thursday, November 13th. They issued a “buy” rating for the company. Royal Bank Of Canada increased their price objective on BRP from $107.00 to $131.00 and gave the company an “outperform” rating in a research report on Friday. Finally, Scotiabank reissued a “sector perform” rating on shares of BRP in a report on Tuesday, September 2nd. Four equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, BRP presently has an average rating of “Moderate Buy” and an average price target of $84.40.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of DOOO. Osaic Holdings Inc. lifted its position in BRP by 905.8% in the second quarter. Osaic Holdings Inc. now owns 694 shares of the company’s stock valued at $34,000 after purchasing an additional 625 shares during the last quarter. Sagard Holdings Management Inc. bought a new position in shares of BRP in the second quarter worth approximately $41,000. JPMorgan Chase & Co. increased its stake in shares of BRP by 1,057.4% in the third quarter. JPMorgan Chase & Co. now owns 1,088 shares of the company’s stock worth $66,000 after buying an additional 994 shares during the period. Quarry LP bought a new stake in BRP during the 3rd quarter valued at $74,000. Finally, Raymond James Financial Inc. bought a new stake in BRP during the 2nd quarter valued at $60,000.

BRP Stock Up 1.8%

The firm has a market cap of $5.60 billion, a PE ratio of 207.19 and a beta of 1.26. The company has a debt-to-equity ratio of 5.54, a quick ratio of 0.55 and a current ratio of 1.34. The company’s 50-day simple moving average is $65.87 and its two-hundred day simple moving average is $57.11.

About BRP

BRP Inc, together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems.