BRP shares were down sharply Thursday morning after the company reported lower third-quarter profit and revenue due to softer demand and downgraded its guidance for next year.
At 9:45 a.m. ET, shares were trading nearly 11% lower at 84.73 Canadian dollars ($62.35).
The Canadian leisure-vehicle manufacturer said demand has been weaker, particularly in international markets, and Chief Executive Jose Boisjoli said the company has adjusted production and deliveries to manage network inventory and protect its dealer-value proposition.
Net income was down more than half, falling to C$63.1 million from C$141.6 million a year earlier. On a per-share basis, the decline was to C$0.81 from C$1.76.
Normalized earnings per share, an adjusted figure, fell to C$3.06, in line with expectations, according to a poll of analysts on FactSet.
Revenue in the period came in at C$2.47 billion, down from C$2.71 billion, and below analyst forecasts for a decline to C$2.65 billion.
For the fiscal year ahead, BRP downgraded total revenue growth to a range of 4% to 5%, from a prior target for growth of 7% to 10%.
Adjusted EPS is seen at C$11.10 to C$11.35, down 6% to 8%, while net income is expected to be between C$740 million and C$765 million.