Polaris (NYSE:PII) said Thursday its sales of Indian motorcycles outpaced rivals in the second quarter, helping the maker of snowmobiles and ATVs record stronger earnings than expected.
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Indian retail sales in North America rose 17%, and the brand continued to take market share from rival bike makers, Polaris said. The company’s motorcycle sales were down in the low-single digits overall due to weaker demand for Slingshot three-wheeled vehicles. In January, Polaris announced that it will discontinue sales of Victory motorcycles.
Harley-Davidson (NYSE:HOG) on Tuesday revealed a 6.7% decline in global retail sales, while its U.S. market share in the heavyweight segment fell to 48.5% from 51.3%.
Polaris off-road vehicles and snowmobiles booked a 5.8% increase in sales, including parts and accessories. Unit retail sales fell in the low-single digits.
“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 Polaris CEO Scott Wine.
Polaris earned $62 million, or 97 cents a share, in the second quarter, down from $71.2 million, or $1.09 a share, in the same period last year. Adjusted earnings, which exclude one-time charges, came in at $1.16 a share to beat Wall Street’s estimate of $1.08.
Revenue jumped 21% to $1.36 billion. Analysts expected revenue of $1.26 billion.
The company raised its full-year forecast. Polaris said adjusted sales are on pace to grow between 12% and 14%, compared to prior guidance of 10% to 13%. Polaris lifted the low end of its earnings outlook, setting a range of $4.35 to $4.50 a share. It previously expected earnings per share of $4.25 to $4.50.
Polaris shares rallied 2.7% to $94.91 in recent trading. The stock climbed as high as $99.16, a new 52-week high.