Polaris Boosts Outlook Again On Higher Profits
Another quarter of better-than-expected earnings has prompted Polaris Industries, Inc., to raise its full-year outlook once again.
The news also caused shares of the Medina-based company to climb on Tuesday.
Polaris—which makes all-terrain vehicles, snowmobiles, motorcycles, and other vehicles—said Tuesday that its earnings totaled $80 million, or $1.13 per share, for the quarter that ended June 30. That’s up roughly 14.6 percent from $69.8 million, or $0.98 per share, during the same period a year ago.
Analysts polled by Thomson Reuters had expected the company to earn $1.11 per share for the quarter.
Polaris’ second-quarter revenue, meanwhile, rose 12 percent to $844.8 million. Sales in the company’s snowmobiles and motorcycles segments slid 5 percent and 6 percent, respectively, but that decline was offset by a 190 percent climb in sales of small vehicles. (Polaris recently increased its presence in the small-vehicle market through the acquisition of French automobile company Aixam Mega.) And revenue for parts, garments, and accessories climbed 33 percent, while off-road vehicles rose 7 percent during the quarter.
The positive results spurred Polaris to lift its full-year earnings guidance to be between $5.20 and $5.30 per share. That’s after the company had already raised its outlook in April.
Polaris’ latest earnings projections represent an increase of 18 to 20 percent over last year’s earnings of $4.40 per share. The company expects 2013 sales to grow by between 13 and 15 percent from 2012, when revenue totaled $3.2 billion.
Shares of the company’s stock were trading up about 4.3 percent at $107.91 during mid-morning trading on Tuesday.
“We are pleased with the strength of our brands and the performance of our team, as they overcame unusually wet weather conditions across North America and sluggish international consumer demand to once again deliver record results,” Chairman and CEO Scott Wine said in a statement.
Wine said that the second half of the year will be “a momentous time for Polaris,” in part because it will include results from the re-launch of the Indian Motorcycles brand, which the company acquired in 2011.
“While we are extremely enthusiastic about our future in motorcycles, we are equally excited to unveil some of the most innovative off-road vehicles the company has ever developed at our upcoming dealer meeting next week,” Wine added.
Twin Cities Business’ May cover story offered an in-depth look at Polaris, including its latest growth and its plans to expand in new markets. Read the full story here.