Why is BRP (TSX: DOO) stock surging?

2 min read | March 26, 2022 04:06 AM AEDT | By Kajal Jain

Why is BRP (TSX: DOO) stock surging? — Image source: © 2022 Kalkine Media Inc

Highlights

BRP Inc (TSX:DOO) stocks saw a spike of over eight per cent at one point on Friday morning, March 25, in the wake of its Q4 and annual results for fiscal 2022 being released.
The enterprise also released a statement announcing the return of the Can-Am brand featuring an all-electric motorcycles line-up.
BRP’s revenue zoomed by 28.5 per cent from 2020 to record an all-time high of C$ 7.64 billion in fiscal 2022.

BRP Inc (TSX:DOO) stocks saw a spike of over eight per cent at one point on Friday morning, March 25, in the wake of its Q4 and annual results for fiscal 2022 being released.

The enterprise also released a statement announcing the return of the Can-Am brand featuring an all-electric motorcycles line-up. The vehicles and parts company said this launch of a family of two-wheel motorcycles would mark the 50th anniversary of the Can-am brand, first introduced in 1973.

BRP Inc (TSX: DOO) financial performance

The Valcourt, Quebec-based company recorded revenues of C$ 2.34 billion in Q4 FY2022, reflecting a year-over-year (YoY) rise of 29.3 per cent. Its Q4 normalized diluted earnings per share (EPS) increased by C$ 1.18 YoY to C$ 3 per share in FY2022.

However, according to the latest earnings report, its Q4 diluted EPS declined by C$ 0.45 YoY to C$ 2.50 per share.

BRP Inc <a class='font-weight-bold' style='border-bottom: 2px dashed;' aria-label='https://kalkinemedia.com/ca/companies/tsx-doo' href='https://kalkinemedia.com/ca/companies/tsx-doo'>(TSX:DOO)</a>’s Q4 FY2022 results

On a full-year basis, BRP’s revenue zoomed by 28.5 per cent to record an all-time high of C$ 7.64 billion in fiscal 2022. Its 2022 net profit more than doubled to C$ 794.6 million, up from C$ 362.9 million in FY2021.

Also read: GPV and VMC: 2 TSXV EV stocks to see as Canada invests in Honda plant

BRP’s stock performance

Having closed at C$ 88.57 on Thursday, BRP stock was trading at C$ 95.87 apiece at 11:40 AM EST on Friday. At this price level, it was nearly 21 per cent up from its 52-week low of C$ 22 (February 24).

Bottomline

BRP believes that bringing its planned line-up to dealers’ showrooms will solidify its financial strength and enhance reach in the key markets. However, investors should analyze market dynamics and track changes in the automobile and electric vehicles (EV) market to make fully informed investment decisions.

Also read: Loblaw (L) & Metro (MRU): 2 TSX consumer stocks to watch

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