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BRP 3Q Results to Feel Weight of Supply Chain Issues, Margin Pressure — Earnings Preview

By Adriano Marchese

Bombardier Recreational Products Inc., which operates as BRP Inc., is scheduled to release its third-quarter results on Wednesday. Here’s what you need to know:

REVENUE: Analyst polled on FactSet expect revenue of 1.72 billion Canadian dollars, the equivalent of around US$1.35 billion. Revenue was C$1.67 billion in the same quarter last year.

EARNINGS: The company is expected to report a fall in earnings per share to C$1.35, according to analysts. Last year, EPS was C$2.22.

ADJUSTED EPS: The consensus forecast for earnings on an adjusted basis is for C$1.30 a share.

WHAT TO WATCH:

–SUPPLY: BRP hasn’t been immune to global supply shortages and supply chain issues. Skeptical investors will be looking to see how this has affected the business and market share gains in the period.

–MARGINS: BMO expects the company’s gross margin will contract by about 240 basis points to 26.7% as the company faces input, labor and logistics costs.

Write to Adriano Marchese at [email protected]

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