BRP (TSX:DOO) stock soars after Q2 results. Buy alert?

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BRP (TSX:DOO) stock soars after Q2 results. Buy alert?

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 BRP (TSX:DOO) stock soars after Q2 results. Buy alert?
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Highlights

  • Headquartered in Valcourt, BRP is engaged in the development and distribution of snowmobiles.
  • In the second quarter of fiscal 2022, BRP reported a net income of C$ 212.9 million.
  • BRP had a network of 3,500 independent dealers and 190 distributors at the end of fiscal year 2021.

Stocks of Bombardier Recreational Products Inc. (BRP Inc.) surged by nine per cent at market open on Thursday, September 2, as the company announced financial results for the second quarter of fiscal year 2022.

The BRP Inc. (TSX:DOO) shares were trading at C$ 116.27, close to its 52-week high of C$ 119.68 per share, as Canadian investors turned their focus to the snowmobiles manufacturing company.

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BRP Inc. (TSX:DOO) Q2 results

BRP recorded revenues of C$ 1.9 billion in Q2 2022, representing an increase of 54 per cent year-over-year (YoY).

Headquartered in Valcourt, BRP is engaged in the development and distribution of snowmobiles, all-terrain vehicles and personal watercraft under different brand names.

BRP had a network of 3,500 independent dealers and 190 distributors at the end of fiscal year 2021.

In the second quarter of fiscal 2022, BRP reported a net income of C$ 212.9 million, which was a significant increase from C$ 126.1 million in Q2 2021.

Its normalized diluted earnings per share stood at C$ 2.89 in the latest quarter, which was an increase of 154 per cent YoY Q2 2022. Its normalized EBITDA increased by 94 per cent YoY to C$ 415 million in the same quarter.

BRP also returned C$ 350 million to shareholders via a substantial issuer bid in Q2 2022.

As DOO stock gains momentum, let's take a closer look at the stock’s recent performance.

BRP Inc. stock performance

DOO stock expanded by 59 per cent in the last twelve months.

In addition, the snowmobile manufacturer's stock noted a surge of 26.5 per cent year-to-date (YTD), as against the Toronto Stock Exchange 300 Composite Index's growth of 6.6 per cent.

Bottom line


In the full-year outlook, BRP has revised its guidance to now expect normalized earnings per share in the range of C$ 8.25 to C$ 9.75 for the fiscal year 2022, up from the previous guidance of C$ 7.75 to C$ 8.5.

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The company also expects its revenues to increase between 27 and 35 per cent. Earlier, BRP had expected its revenues to increase between 28 and 33 per cent.

 

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