BRP Inc. (DOOO), the Canadian recreational vehicle manufacturer, saw its stock surge 12.35% in the pre-market session on Friday. This significant price movement appears to be driven by the company raising its fiscal year 2025 normalized earnings per share (EPS) guidance.
According to the news, BRP increased its FY25 normalized EPS outlook to C$4.25-C$4.75, up from the previous guidance of C$2.75-C$3.25. The company also raised its FY25 normalized EBITDA view to C$1.02B-C$1.07B, while lowering its FY25 revenue forecast to C$7.6B-C$7.8B from C$7.8B-C$8B.
The upward revision in profit projections suggests BRP's confidence in its ability to deliver stronger earnings despite potentially lower sales. Investors seem to be reacting positively to this guidance update, driving the pre-market rally in the company's stock price.