BRP Inc. (NASDAQ:DOOO) Surpasses Earnings Estimates but Faces Revenue Shortfalls
- BRP Inc. (NASDAQ:DOOO) reported an EPS of $0.664, doubling the estimated $0.33, indicating strong earnings growth.
- The company's revenue of approximately $1.36 billion fell short of the estimated $1.78 billion, highlighting challenges in achieving profitability.
- Despite a significant reliance on debt financing, indicated by a debt-to-equity ratio of about 6.49, BRP Inc. maintains a reasonable level of liquidity with a current ratio of approximately 1.34.
BRP Inc. (NASDAQ:DOOO) is a well-known player in the recreational products industry, offering a range of vehicles and engines. The company is recognized for its innovative products and has a strong presence in the market. Despite facing competition from other industry giants, BRP Inc. continues to make strides in its financial performance.
On August 29, 2025, DOOO reported earnings per share (EPS) of $0.664, surpassing the estimated $0.33. This indicates a positive trend in the company's earnings growth. Despite the strong EPS, DOOO's revenue of approximately $1.36 billion fell short of the estimated $1.78 billion.
The company's price-to-sales ratio stands at about 0.75, suggesting that its stock is valued at less than one times its sales. This could indicate that the market perceives the stock as undervalued. Additionally, the enterprise value to sales ratio is approximately 1.10, while the enterprise value to operating cash flow ratio is around 10.43, reflecting the company's valuation in relation to its cash flow.
DOOO's financial health is further illustrated by its debt-to-equity ratio of about 6.49, indicating a significant reliance on debt financing. However, the current ratio of approximately 1.34 suggests that the company has a reasonable level of liquidity to cover its short-term liabilities. Despite the challenges, BRP Inc. continues to navigate its financial landscape with strategic measures.
| Symbol | Price | %chg |
|---|---|---|
| VKTR.JK | 116 | 0 |
| 603129.SS | 284.98 | 0 |
| 000040.KS | 537 | 0 |
| 603766.SS | 12.23 | 0 |
BRP Inc. (NASDAQ: DOOO) Quarterly Earnings Preview
- Analysts predict earnings per share (EPS) of $0.29 and revenue of $1.75 billion for the upcoming quarter.
- Financial metrics such as a debt-to-equity ratio of 12.97 and a current ratio of 1.31 highlight BRP's liquidity and leverage challenges.
BRP Inc. (NASDAQ: DOOO) is a global leader in the design, development, manufacturing, and distribution of powersports vehicles and propulsion systems. The company is known for its innovative products, including snowmobiles, watercraft, and off-road vehicles. As it prepares to release its quarterly earnings on May 29, 2025, analysts are closely watching the company's financial performance.
Wall Street analysts estimate that BRP's earnings per share (EPS) will be $0.29, with projected revenue of approximately $1.75 billion. However, the company is expected to report a decline in earnings for the quarter ending April 2025, with lower revenues compared to the previous year.
The upcoming earnings report could significantly impact DOOO's stock price. If the actual results exceed the market consensus, it could lead to a rise in the stock price. Conversely, if the results fall short, the stock might experience a decline. The management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings expectations.
BRP's financial metrics reveal a mixed picture. The company's price-to-sales ratio of 0.47 suggests that the stock is trading at less than half of its sales per share. Meanwhile, the enterprise value to sales ratio is approximately 0.84, and the enterprise value to operating cash flow ratio is around 9.55. These figures indicate that while the company has a reasonable level of liquidity, it also faces challenges in terms of profitability.
The company's debt-to-equity ratio is notably high at about 12.97, indicating significant leverage. However, the current ratio of approximately 1.31 suggests that BRP has a reasonable level of liquidity to cover its short-term liabilities. As the company prepares for its earnings release and subsequent Annual and Special Meeting of Shareholders, investors will be keenly observing these financial metrics and management's insights for future guidance.
