BRP Inc. (DOOO) stock surged 14.04% in pre-market trading on Friday, following the company's fiscal Q3 2025 earnings report and updated guidance. The key drivers behind the rally were:
1. BRP raised its fiscal 2025 normalized earnings per share (EPS) guidance to C$4.25-C$4.75, significantly higher than its previous outlook of C$2.75-C$3.25. The increased profit projections signal BRP's confidence in delivering stronger earnings despite potentially lower sales volumes.
2. For the third quarter, BRP reported earnings of $0.85 per share, beating analyst estimates of $0.50 per share by a wide margin. This 70% positive earnings surprise likely boosted investor sentiment.
Although BRP lowered its fiscal 2025 revenue forecast to C$7.6B-C$7.8B from C$7.8B-C$8B, the company's ability to raise profit guidance and deliver a strong earnings beat showcased its effective cost management and operational efficiency. Investors reacted positively to these developments, driving the pre-market rally in BRP's stock price.
Comments