Can Arctic Cat Meet These Numbers?

Arctic Cat (NAS: ACAT) is expected to report Q3 earnings on Jan. 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Arctic Cat's revenues will grow 8.3% and EPS will grow 44.6%.

The average estimate for revenue is $224.2 million. On the bottom line, the average EPS estimate is $1.33.


Revenue details
Last quarter, Arctic Cat chalked up revenue of $229.0 million. GAAP reported sales were 12% higher than the prior-year quarter's $204.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.80. GAAP EPS of $1.80 for Q2 were 57% higher than the prior-year quarter's $1.15 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 28.0%, 10 basis points better than the prior-year quarter. Operating margin was 16.9%, 80 basis points better than the prior-year quarter. Net margin was 10.9%, 40 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $677.5 million. The average EPS estimate is $2.84.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 79 members out of 112 rating the stock outperform, and 33 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Arctic Cat a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arctic Cat is outperform, with an average price target of $50.00.

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The article Can Arctic Cat Meet These Numbers? originally appeared on Fool.com.

Seth Jayson owned shares of the following at the time of publication: Arctic Cat. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Arctic Cat. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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