Shares of Arctic Cat Inc. jumped about 17 percent in early trading Thursday after the company posted strong sales and earnings for its third quarter.
The stock, which closed at $13.72 a share Wednesday, was trading at $16.17 share Thursday morning.
A rebound in snowmobile sales and slight growth in demand for all-terrain vehicles powered a 16 percent increase in revenue and a sharp gain in earnings for the third quarter.
The Thief River Falls-based company said that sales for the period ended Dec. 31 totaled $152 million. Earnings were $9.3 million, or 50 cents a share, versus $2.6 million, or 14 cents a share, in the same quarter a year earlier.
Snowmobile sales increased 33 percent while ATV sales rose 1 percent.
Arctic Cat raised and narrowed its estimated earnings for the fiscal year ending March 31. The company now anticipates that earnings will be in the range of 57 cents to 65 cents a share, driven by increased international revenue and higher gross margins. The company previously forecast earnings of 40 cents to 55 cents a share.