UPDATE 1- Arctic Cat Q1 loss narrower than expected

(Recasts, adds details, share movement)

July 24 (Reuters) - All-terrain vehicle maker Arctic Cat Inc's (ACAT.O) quarterly loss was narrower than Wall Street targets, as it benefited from the shipment timing to dealers.

The company also unveiled second-quarter estimates below expectations, but its forecast for the year topped consensus.

Arctic Cat posted a first-quarter net loss of $7 million, or 39 cents a share, that was almost flat with the year-ago period.

Revenue rose 7 percent to $93.9 million.

Analysts expected a loss of 55 cents a share, before special items, on revenue of $89.43 million, according to Reuters Estimates.

Sales of snowmobiles jumped 80 percent to $21.4 million in the latest quarter, but all-terrain vehicles (ATV) sales, which chipped in more than half to the top line, were down 10 percent to $53.8 million.

The company forecast second-quarter earnings range between 60 cents to 70 cents a share on net sales ranging between $189 million to $199 million.

Analysts were expecting the company to earn $1.01 per share on revenue of $225.73 million in the second quarter.

For the year ending March 2009, the company expects revenue of $650 million to $674 million, based on increased snowmobile revenue, and earnings of 18 cents to 28 cents a share.

It, however, expects ATV revenue to be flat for the year and does not expect core ATV retail sales to pick up until the overall economy strengthens.

Analysts expect earnings of 12 cents a share, before special items, on revenue fo $654.6 million for the year.

"We continue to expect the company to return to profitability this fiscal year," said Chief Executive Christopher Twomey. "We are better positioned to attain modest growth and profitability in the year ahead, due to the strategic actions we took last fiscal year."

Shares of the company, which hit a 12-month low last week, were up more than 4 percent at $8.50 in morning trade on Nasdaq. (Reporting by Sriram Iyer in Bangalore; Editing by Anil D'Silva) ((sriram.iyer@thomsonreuters.com ; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sriram.iyer.reuters.com@reuters.net))