Polaris Reports Record Profits And Sales, Again
Polaris on Tuesday announced record sales and earnings for its second quarter, with both increasing by more than 20 percent.
The Medina-based recreational vehicle company said that net earnings for the second quarter, which ended June 30, totaled $96.9 million, or $1.42 per share, up 21 percent from $80 million, or $1.13 per share, during the same period in 2013. Earnings per share were $0.03 higher than what analysts polled by Thomson Reuters had expected.
Revenue, meanwhile, totaled $1.01 billion, up 20 percent from $844 million in the second quarter of 2013. Second-quarter revenue was in line with analysts’ projections.
Shares of Polaris’ stock were trading up about 9.6 percent at $145.96 per share Tuesday morning.
For the full 2014 year, the company is increasing its earnings guidance to a range of $6.48 to $6.58 per diluted share, which would be an increase of around 20 percent compared to its 2013 results. Prior to its second-quarter report, the company’s earnings forecast for 2014 was a range of $6.17 to $6.37 per share.
“Our strong financial performance in the quarter was driven by outstanding retail sales growth, up 15 percent in North America, driven by share gains in our side-by-side vehicle product line, and continued growth of our Indian motorcycle business,” Chairman and CEO Scott Wine said in a statement. “Between strong demand for our existing offerings and our industry leading product innovation, we believe sales and earnings will continue to accelerate in the second half of the year, supporting our confidence and decision to again raise full-year sales and earnings guidance for 2014.”
Polaris said its off-road vehicle sales increased by 13 percent from the second quarter of 2013, to $701.5 million. Its motorcycles division increased sales by 107 percent to $103.1 million, which it said was due largely to the revival of its Indian motorcycle brand. Its snowmobile sales, meanwhile, fell from $8.5 million to $6.1 million.
Polaris’ international sales totaled $170.5 million, up 26 percent over the same period in 2013. Polaris is one of the 20 largest public companies in Minnesota based on revenue.