BRP Inc

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1157 ET - If Polaris' 3Q earnings and sales miss plus guidance cut are any clue, leisure-craft peer BRP may be in the same boat. In a TD Cowen report, Brian Morrison notes that Polaris' North American retail sales fell 7% due to softness from each of its segments. "Weak retail sales, active dealer destocking, increased promotional activity and heightened floor plan financing costs resulted in net sales declining 23%," he says. Polaris thinks this challenging environment will continue, and will be a drag on the industry including BRP for the next several quarters. BRP falls 4.7% to C$73.57. (adriano.marchese@wsj.com)

0850 ET - BRP won't likely recover the full price of its investment in the ailing marine business, but should recoup some proceeds, according to National Bank of Canada in a report. Analyst Cameron Doerksen says that even in the best of times, the segment struggled to produce better margins, pointing to FY22 when marine generated C$500 million in revenue but only 15% gross margin, only about half of the 28.8% gross margin of the Powersports business. He pegs investment in the business at C$100-C$200 million after it was acquired as one of three businesses in 2018 for a total C$291 million. (adriano.marchese@wsj.com)