The quarter was solid, with a 17% beat on earnings and a 5% beat on sales. A management change should be good, and consensus calls for earnings growth in 2025 (very high with a recovery year) and 2026 (still 20%+). Offsetting this is continued economic/tariff/inflation uncertainty. The momentum shift is positive. We would move to a HOLD but have less confidence still in a BUY on this for now.
Here are some other third-party comments: Despite planning for a flat industry in January, management noted that the overall industry declined 5% (excl. snowmobiles), with the weakness persisting into May. In addition, we would like to see improvements for entry-level vehicles, which continue to see softer demand and lower financing approvals, before revisiting our stance on the shares.