Arctic Cat Lowers Full-Year Outlook

Despite beating analysts’ profit expectations, the company has struggled with currency and sales issues abroad.

Arctic Cat blew past investor’s profit expectations for the quarter, but curbed the enthusiasm by warning of a less lucrative full fiscal year.
The Plymouth-based recreational vehicle company said profits for third quarter of fiscal 2015, which ended Dec. 31, were $7.5 million or 57 cents per share. That handily beat earlier estimates of about 48 cents per share, according to the Star Tribune.
Despite the good news, headwinds of currency issues in the Canadian market and the fall of Russian sales are expected to cause financial headaches for the company. The company said those issues, among other expenses, have caused it to lower the full fiscal year outlook to 36 to 44 cents per share.
“Fiscal 2015 is a challenging year of transition where we are resetting our strategic priorities to deliver improved long-term performance,” CEO Christopher Metz said in a statement. Metz was named CEO last November to replace the company’s previous CEO, Claude Jordan, who was abruptly fired in June.
Arctic Cat’s stock jumped briefly on the quarterly report, but dove back down below its previous close shortly after. Shares are down slightly in late-afternoon trading at $28.93.