Polaris announced record fourth-quarter profits and revenue Tuesday and projected future growth in 2014, but its stock initially fell 6 percent as the company’s 2014 forecast was more than 5 percent lower than analysts’ expectations.
 
The Medina-based recreational vehicle company’s profits were bolstered by strong sales in its off-road vehicle line, the revival of its Indian motorcycle brand, and a nearly 50 percent increase in international sales.
 
Polaris announced that net earnings for the fourth quarter, which ended December 31, totaled $108.7 million, or $1.56 per share, up 23 percent from $88.1 million, or $1.24 per share, during the same period in 2012. Earnings per share were $0.01 higher than what analysts polled by Thomson Reuters had expected.

 
Revenue, meanwhile, totaled $1.08 billion, up 20 percent from $900.6 million in the fourth quarter of 2012. Fourth-quarter revenue was just above analysts’ projections of $1.06 billion.
 
For the quarter, off-road vehicle sales increased by 16 percent, motorcycle sales increased by 94 percent, and snowmobile sales fell by 13 percent.
 
Polaris’ stock price fell about 6 percent between Monday’s closing price and Tuesday’s opening price. It was improving mid-Tuesday morning but remained down about 3.3 percent at $127.7 per share.
 
Polaris reported net earnings of $381 million for the full year, up 22 percent from $312 million in 2012. Its revenue for the year totaled $3.78 billion, up 18 percent from $3.21 billion in 2012.
 
“The past year was one of the most transformative in the company’s history, as we introduced more new products than ever before, concluded a strategic acquisition, and continued the development of our global operational footprint,” CEO Scott Wine said in a statement. “These and other milestones helped us attain our first $1 billion sales quarter, and we enter 2014 poised to extend our established record of innovation and success.”
 
Wine added that this is the company’s fourth consecutive year of greater than 15 percent growth in both revenue and earnings and that sales and profits have more than doubled since 2009. Twin Cities Business profiled Polaris in a May feature story, examining how the company has built up its powersports business and is now becoming a global small-vehicle manufacturer. To read more, click here.
 
Polaris also announced its forecast for this year, saying that it expects 2014 to increase by 14 to 18 percent, to a range of $6.17 to $6.37 per share. Prior to the announcement, analysts reportedly expected to see earnings of $6.67 per share for 2014.