NEW YORK (TheStreet) -- Arctic Cat (ACAT - Get Report) stock is moving lower Monday after the surprise announcement of its CEO's exit. In a statement, the company said Claude Jordan would step down as chairman and CEO, effective immediately. Former CEO and current board member Chris Twomey has been named as interim CEO.
"Claude and the board have mutually decided this is the right time, however, for new executive leadership at the company. It makes sense to set up the leadership team that will take the company forward to a successful future, as we enter a new fiscal year," Twomey said in the statement.
By late afternoon, shares had plummeted 9.1% to $33.90.
- The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 28.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Leisure Equipment & Products industry. The net income increased by 69.5% when compared to the same quarter one year prior, rising from -$5.08 million to -$1.55 million.
- ACAT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
- ARCTIC CAT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. Despite the past stability of earnings, the consensus estimate anticipates a weakening in earnings. During the past fiscal year, ARCTIC CAT INC increased its bottom line by earning $2.87 versus $2.86 in the prior year. For the next year, the market is expecting a contraction of 16.4% in earnings ($2.40 versus $2.87).
- You can view the full analysis from the report here: ACAT Ratings Report