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  5. DOO: Please comment on earning. [BRP Inc. Subordinate Voting Shares]
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Q: Please comment on earning. Is it still a hold ? Thanks a lot.
Asked by Lai Kuen on March 28, 2024
5i Research Answer:

MH DOO is now trading at 10x times' Forward P/E. In 4Q-2024, DOO’s revenue declined -12.5% to $2.69B, missing the estimates of $2.8B and EPS was $2.46 missing estimates of $2.60. The company missed on both the top and bottom lines. DOO estimates FY2025's revenue to be in the range of $9.1-$9.5B due to headwinds in consumer spending for the overall industry, which is below estimates of $10B, and normalized EPS is expected to be in the range of $7.25 - $8.25. DOO is expected to maintain market share and reduce inventory, which is good news, as it frees capital for other purposes. DOO also raised dividends by 17% to $0.21 quarterly. Overall, the result was not great, but the company’s focus going forward on controlling inventory and maintaining the market is encouraging. It may be bottoming as investors have largely ignored the miss today.