With surging snowmobile sales leading the way, Arctic Cat posted a strong quarter, its profits rising 19 percent and handily beating Wall Street expectations.
It's a good way to end the company's 50th anniversary.
The Plymouth, Minn.-based company recorded fiscal second quarter earnings of $21.4 million or $1.15 per share, up from 97 cents per share a year ago, and 7 cents higher than stock analysts' average per-share estimate.
The manufacturing plant in Thief River Falls employs 1,200, up from a year ago, a company spokeswoman said. The entire company employs about 1,400.
Arctic Cat's revenues clocked in at $204.8 million, up 17 percent over a year ago, and 5 percent higher than Wall Street's expectations.
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Snowmobile sales were $114.7 million, a 25 percent increase over a year ago that was powered by Arctic Cat's new model line-up for 2012. That new line-up includes 23 new machines representing 75 percent of the company's snowmobile offerings.
All-terrain vehicle (ATV) revenues stood at $58.8 million, up 4 percent over a year ago, an increase primarily driven by international sales. Also, sales of parts, garments and accessories rose 13 percent to $31.4 million.
"The company remains well-positioned for future sales growth across all product lines," Arctic Cat Chief Executive Claude Jordan said in a news release.
Arctic Cat upped its earnings guidance range for the year to $1.10 per share to $1.15 per share from 94 cents to $1 per share. The sales guidance range was increased from $520 million to $530 million to $530 million to $545 million.
