BRP (NASDAQ:DOOO) Shares Gap Up Following Strong Earnings

Shares of BRP Inc. (NASDAQ:DOOO - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $35.92, but opened at $38.18. BRP shares last traded at $40.48, with a volume of 46,722 shares trading hands.

The company reported $0.33 EPS for the quarter, beating analysts' consensus estimates of $0.29 by $0.04. BRP had a net margin of 2.29% and a return on equity of 61.20%. The firm had revenue of $1.34 billion for the quarter, compared to analysts' expectations of $1.78 billion.

BRP Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, July 14th. Investors of record on Monday, June 30th will be paid a $0.1557 dividend. This is a boost from BRP's previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Monday, June 30th. This represents a $0.62 dividend on an annualized basis and a yield of 1.41%. BRP's payout ratio is presently -29.21%.

Analyst Ratings Changes

A number of brokerages recently issued reports on DOOO. Desjardins upgraded shares of BRP from a "hold" rating to a "buy" rating in a research note on Friday. Baird R W cut shares of BRP from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 4th. UBS Group dropped their price target on shares of BRP from $45.00 to $35.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 23rd. Raymond James reiterated a "strong-buy" rating on shares of BRP in a research note on Thursday, March 27th. Finally, Stifel Canada upgraded shares of BRP from a "hold" rating to a "strong-buy" rating in a research note on Thursday. Eight research analysts have rated the stock with a hold rating, two have given a buy rating and three have given a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $53.75.

Hedge Funds Weigh In On BRP

A number of hedge funds have recently bought and sold shares of the business. Quadrant Capital Group LLC increased its position in shares of BRP by 259.3% during the 4th quarter. Quadrant Capital Group LLC now owns 679 shares of the company's stock valued at $35,000 after purchasing an additional 490 shares during the last quarter. Signaturefd LLC increased its holdings in BRP by 296.1% in the 4th quarter. Signaturefd LLC now owns 1,208 shares of the company's stock worth $61,000 after acquiring an additional 903 shares in the last quarter. Dnca Finance increased its holdings in BRP by 36.1% in the 4th quarter. Dnca Finance now owns 1,390 shares of the company's stock worth $71,000 after acquiring an additional 369 shares in the last quarter. C M Bidwell & Associates Ltd. bought a new position in BRP in the 4th quarter worth approximately $77,000. Finally, Acadian Asset Management LLC bought a new position in BRP in the 1st quarter worth approximately $70,000.

BRP Stock Up 9.1%

The company has a current ratio of 1.37, a quick ratio of 0.57 and a debt-to-equity ratio of 5.19. The firm has a market capitalization of $3.23 billion, a P/E ratio of 23.54 and a beta of 1.17. The company has a 50 day simple moving average of $35.51 and a two-hundred day simple moving average of $42.85.

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.