Polaris Beats Profit And Sales Expectation As ORV And Snowmobile Growth Helps Boost Results

By Tomi Kilgore Markets MarketWatch Pulse

Polaris Industries Inc. reported Thursday a second-quarter net profit that fell to $62.0 million, or 97 cents a share, from $71.2 million, or $1.09 a share, in the same period a year ago. The off-road vehicle maker said adjusted earnings per share came to $1.16, above the FactSet consensus of $1.08. Revenue rose to $1.36 billion from $1.13 billion, beating the FactSet consensus of $1.26 billion. Off-road and snowmobile sales rose to $845.5 million from $799.3 million, above the FactSet consensus of $761.7 million, while motorcycle sales fell 13% to $198 million but beat expectations of $192 million. The company raised its 2017 sales growth outlook to 12% to 14% from 10% to 13% and its adjusted EPS outlook to $4.35 to $4.50 from $4.25 to $4.50. "The powersports industry remained very competitive and headwinds persist, but we were encouraged by the return to growth in our Side-by-Side business and continued strength and aggressive share gains for Indian Motorcycles," said Chief Executive Scott Wine. On Wednesday, the company said it recalled 25,600 ATVs after reports of fuel leaks and fires. The stock, which wasn't active in premarket trade, has rallied 12.2% year to date, while the S&P 500 has gained 10.5%.

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