ATV Sales Hurting Arctic Cat (ACAT, PII)

Arctic Cat Inc. (NASDAQ: ACAT) is seeing shares come off the tracks in after-hours trading after the company previewed poor results.  The company places the blame on on lower than anticipated all-terrain vehicles sales.  This is attributed to continued weak retail sales, the reduction of a large planned retail customer order, and finally on a parts supply issue.

Arctic Cat now expects fourth-quarter diluted EPS of $0.00 to -$0.08 and net sales are now estimated to be $167 million to $169 million compared to $172.6 million in the prior-year fourth quarter.  First Call had estimates of $0.23 EPS and $198.9 million in revenues.  Analysts had only taken this down by $0.01 over the last ninety-day period, although analysts were mostly cautious anyway on this one.

The company now see reporting a net loss for the March 31, 2008 fiscal year in the range of $0.20 to $0.28, compared to year-ago diluted EPS of $1.15.

Shares are down some 18% at $6.01 in after-hours trading after closing up less than 1% at $7.37 in regular trading.  That will also be a new 52-week low under the prior $6.81 low if this holds.  While this would be easy to keep bashing, Arctic Cat’s stock had already sold off roughly 65% since last summer’s highs and are down far worse than this since early 2005.

Shares of larger competitor Polaris Industries, Inc. (NYSE: PII) are also lower by more than 2% at $42.75 in after-hours trading, after it also closed up nearly 1% in regular trading.

Jon C. Ogg
April 8, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at and he does not own securities in the companies he covers.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.