BRP Q1 Profit Surges, Revenue Falls; CEO José Boisjoli to Retire

BRP Inc. reports Q1 profit of $161 million, a significant increase from $42.5 million in the same period last year. Revenue for the quarter totaled $1.8 billion, slightly lower than $2 billion in the previous year. The company also announced that CEO José Boisjoli will retire at the end of the fiscal year after 22 years in the top job.

BRP Inc. (TSX: DOO) reported a significant increase in its first-quarter profit, reaching $161 million, compared to $42.5 million in the same period last year. The company's revenue for the quarter totaled $1.8 billion, a slight decrease from $2 billion in the previous year [1].

The company's normalized profit per diluted share for the quarter ended April 30 was 47 cents, compared to $1.58 per diluted share a year ago [1]. This performance was driven by strong profitability, despite a decrease in revenue.

Additionally, BRP Inc. announced that President and CEO José Boisjoli will retire by the end of the fiscal year after 22 years in the top job. Boisjoli's tenure saw the company transform from a Bombardier spin-off into a global Powersports leader, significantly expanding its product portfolio and market presence [3].

The company's stock has lost about 29.4% since the beginning of the year compared to the S&P 500's gain of 0.1% [2]. The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call. BRP Inc. has topped consensus revenue estimates three times over the last four quarters, but the company's shares are expected to underperform the market in the near future due to unfavorable estimate revisions [2].

The Board of Directors is actively conducting a search for Boisjoli's successor, and he will continue to lead until the new appointment is made. The current consensus EPS estimate for the coming quarter is $0.41 on $1.26 billion in revenues, and for the current fiscal year, it is $2.38 on $5.4 billion in revenues [2].

References:
[1] https://ca.finance.yahoo.com/news/brp-says-q1-profit-company-111249136.html
[2] https://finance.yahoo.com/news/brp-inc-dooo-beats-q1-111502374.html
[3] https://www.stocktitan.net/news/DOOO/brp-s-president-and-ceo-jose-boisjoli-to-retire-by-the-end-of-the-lcscwr4ejh5d.html