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Arctic Cat fiscal quarter sales likely up 10 percent, analyst says

arcticcat

October 10, 2013
Filed under News, Top Stories

Expect Arctic Cat to report fiscal quarter sales growth of 10 percent, according to a research note from BMO Capital Markets analyst Gerrick Johnson that was provided to Powersports Business.

Arctic Cat’s fiscal 2Q2104 results are anticipated to show “75 percent growth in side-by-side vehicle sales, benefitting from growth in core Wildcat vehicles and incremental sales from the Wildcat four-seater,” Johnson reports. “We are looking for 6% growth in ATV sales, which could end up being too optimistic. We think good side-by-side sales should help generate 7% growth in parts and accessories.”

Sales in the quarter of Arctic Cat snowmobiles could be a “potential area of weakness, where we expect 2Q14 sales to decline 3.6%. Snowmobiles represent almost 50% of Q2 sales,” Johnson writes. “While ACAT snowmobile dealers seem optimistic about the new ‘Yama-Cat’ ACAT snowmobiles that incorporate Yamaha’s high quality four-stroke engines, most also complain about very high inventory levels. We also believe ACAT shipped some ‘sleds’ early, which helped grow that business by 25% in 1Q and ended up being the difference in achieve 1Q sales estimates despite lower-than-expected sales of off-road vehicles. This additional channel fill, after a lackluster MY2013, could put pressure on the company’s ability to meet 2Q snowmobile expectations.”

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