BRP Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

BRP Inc. (TSE:DOO) just released its latest quarterly results and things are looking bullish. The company beat forecasts, with revenue of CA$1.8b, some 5.8% above estimates, and statutory earnings per share (EPS) coming in at CA$2.19, 489% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, BRP's 17 analysts are now forecasting revenues of CA$7.83b in 2026. This would be an okay 2.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 75% to CA$4.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$7.60b and earnings per share (EPS) of CA$3.29 in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a massive increase in earnings per share in particular.

See our latest analysis for BRP

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.5% to CA$66.82per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values BRP at CA$94.00 per share, while the most bearish prices it at CA$50.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that BRP's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 9.2% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.9% annually. So it's pretty clear that, while BRP's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BRP's earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that BRP will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on BRP. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for BRP going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 3 warning signs for BRP you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.