DOO Stock: HOLD Call - EPS Crushed It But Guide Cut 45% Q1 FY2027

BRP Inc (DOO) Q1 FY2027 earnings breakdown - a conversational walkthrough with a price-aware verdict and Wall Street consensus comparison. All financial figures in CAD; share price in USD (NASDAQ). THE CALL: HOLD (3/5 conviction, MODERATE) - CURRENT @ $58.57 USD -> HOLD - BUY below $50.00 with $44.00 stop - AVOID above $72.00 TRIGGER: North American retail turns positive AND tariff guide stabilises WINDOW: Through Q3 FY2027 earnings (Dec 2026) WALL STREET CONSENSUS - Ratings: 2 Strong Buy / 5 Buy / 6 Hold / 0 Sell / 0 Strong Sell -> Moderate Buy - Median 12-month PT: $80 (range $62 - $96) THESIS BRP is the powersports leader — Ski-Doo, Sea-Doo, Can-Am — riding a dealer-restock-driven shipment surge while underlying retail demand is still falling and tariffs squeeze the full-year outlook. Bull lever: If dealer inventories are now right-sized and retail stabilises, FY28 earnings normalise well above the cut FY27 guide and the multiple re-rates. Key risk: Tariffs persist and retail demand keeps sliding, turning the Q1 shipment snap-back into a one-quarter wonder and forcing a second guide cut. KEY METRICS - Q1 FY2027 (CAD) - Revenue: $2.39B (+29.5% YoY) - Normalized diluted EPS: $1.83 (vs $0.75 est) - reported diluted $1.73 - Gross margin: 23.5% (+210 bps YoY) - Operating margin: 9.43% (vs 5.08% prior year) - Normalized EBITDA: $334.4M (+66.5% YoY) - Free Cash Flow: $367.3M (vs $201.3M prior year) - Segments: Year-Round $1,448.7M (61%) / Seasonal $568.4M (24%) / PA&A & OEM $374.7M (15%) - North American retail sales: -7% YoY - FY27 guidance CUT: normalized EPS $3.00-$3.50 (from prior $5.50-$6.50); revenue $9.12-$9.38B DISCLAIMER This is for informational and educational purposes only. Not financial advice. Charged Alpha does not have a position in DOO. #DOO #BRP #SkiDoo #SeaDoo #CanAm #powersports #earnings #investing #stocks #ChargedAlpha