BRP Inc. (TSE:DOO) Yearly Results: Here's What Analysts Are Forecasting For This Year

Investors in BRP Inc. (TSE:DOO) had a good week, as its shares rose 9.5% to close at CA$90.95 following the release of its annual results. Results were roughly in line with estimates, with revenues of CA$10b and statutory earnings per share of CA$9.47. 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.

View our latest analysis for BRP

Taking into account the latest results, the current consensus, from the 19 analysts covering BRP, is for revenues of CA$9.65b in 2025. This implies a small 6.9% reduction in BRP's revenue over the past 12 months. Statutory earnings per share are expected to descend 15% to CA$8.46 in the same period. Before this earnings report, the analysts had been forecasting revenues of CA$10.1b and earnings per share (EPS) of CA$9.59 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the CA$107 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on BRP, with the most bullish analyst valuing it at CA$137 and the most bearish at CA$89.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 6.9% annualised decline to the end of 2025. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - BRP is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CA$107, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for BRP going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for BRP that we have uncovered.

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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.