Arctic Cat (ACAT) Misses Q2 EPS by 15c; Cuts Outlook

Arctic Cat (NASDAQ: ACAT) reported Q2 EPS of $0.85, $0.15 worse than the analyst estimate of $1.00. Revenue for the quarter came in at $211.2 million versus the consensus estimate of $236.9 million.

Arctic Cat sees FY2016 EPS of $0.05-$0.15, versus the consensus of $0.80. Arctic Cat sees FY2016 revenue of $665-675 million, versus the consensus of $694.5 million.

Christopher Metz, Arctic Cat’s president and chief executive officer, stated: “The company executed well in the second quarter on our strategies to reposition the business for a return to growth in fiscal 2017 and beyond. However, sales and earnings in the quarter were dampened by a greater than anticipated Canadian currency exchange impact and a softer ATV/ROV retail market industry-wide.”

Commenting further, Metz said: “During the second quarter, we introduced new ATV/ROV products to dealers in August and unveiled exciting product and marketing initiatives, including our exclusive partnership with racer Robby Gordon and his SPEED brand. Under this agreement, we will bring innovative side-by-side and accessory products to market.

“Additionally, our effort to rightsize our core North America ATV dealer inventory is on track through the first six months of this fiscal year. The significant reductions we achieved in the first quarter allowed us to introduce new products in the second quarter without increasing overall inventory levels. We remain committed to further reducing non-current inventory to enable a return to wholesale and retail growth of new products next fiscal year.”

For earnings history and earnings-related data on Arctic Cat (ACAT) click here.

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