ATV and snowmobile maker Arctic Cat on Thursday posted a $1.5 million loss for its fiscal fourth quarter and lowered its outlook for fiscal year 2015 due to the weak Canadian currency and an unfavorable product mix.
The January-to-March loss amounted to 12 cents a share, which was 2 cents lower than the average expected by Wall Street analysts. Revenue grew 28 percent to $145 million.
Arctic Cat shares closed Thursday at $33.95, down $4.96, or 12.75 percent.
The Plymouth-based company’s shares experienced a similar drop when it last reported quarterly results in January. At that time, Arctic Cat cited difficulties in a new co-branding partnership with Yamaha Corp.
On Thursday, CEO Claude Jordan said in a statement that the manufacturer actually saw progress from the year-ago fourth quarter when Arctic Cat posted a net loss of $5 million, or 38 cents a share.
“The business posted strong double-digit sales gains on increased sales across all product lines and improved bottom-line results,” Jordan said. “We were pleased with the demand for our new Wildcat Trail side-by-side, as well as the Wildcat X. Our priorities remain to further advance our growth strategy through new product introductions and international expansion, while enhancing our operating efficiency.”
Arctic Cat saw its strongest results in traditional all-terrain vehicles and “side-by-side” ATVs, with combined sales up 21 percent to $106 million during the quarter. Snowmobile sales were $6.4 million and parts and garment sales were just $33 million.
Jordan added that “our business will face significant headwinds in fiscal 2015” due to the weak Canadian dollar. About 30 percent of Arctic Cat’s revenue comes from Canada.
As a result, the company now expects sales of just $775 million to $786 million and earnings of $2.33 to $2.43 per share for the fiscal year ending March 31, 2015. That is far below the Wall Street consensus forecasts of fiscal 2015 revenue of $805 million and profit of 3.36 a share.
Arctic Cat repurchased $23.4 million worth of stock and paid a dividend of 10 cents a share during the fourth quarter.
Going forward, officials said they expect results to be shaped by traditional ATV and “side-by-side” ATV sales in North America. Those sales are expected to rise between 2 and 9 percent.