Arctic Cat Beats Up on Analysts Yet Again

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Arctic Cat (NAS: ACAT) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Arctic Cat beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share grew significantly.

Margins improved across the board.

Revenue details
Arctic Cat logged revenue of $207 million. The six analysts polled by S&P Capital IQ predicted revenue of $181.8 million. Sales were 36% higher than the prior-year quarter's $152.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.92. The six earnings estimates compiled by S&P Capital IQ anticipated $0.59 per share. GAAP EPS of $0.92 for Q3 were 84% higher than the prior-year quarter's $0.50 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 23.1%, 160 basis points better than the prior-year quarter. Operating margin was 12.6%, 460 basis points better than the prior-year quarter. Net margin was 8.2%, 210 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $82.4 million. On the bottom line, the average EPS estimate is -$0.73.

Next year's average estimate for revenue is $544 million. The average EPS estimate is $1.22.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 53 members out of 84 rating the stock outperform, and 31 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Arctic Cat a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arctic Cat is outperform, with an average price target of $28.40.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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