Shares of Polaris Industries Inc. tumbled 5.4% to a seven-month low in midday trade Monday, after the off-road vehicle maker's slashed profit outlook prompted a downgrade at KeyBanc Capital Markets. Earlier Monday, Polaris said it now expects 2016 earnings per share of $3.30 to $3.80, down from the company's July guidance of $6.00 to $6.30. The company said it expects sales to decline in the mid-to-high-single-digit percentage range from a year ago, compared with its previous guidance of down 2% to flat. The company said it cut its outlook because it had underestimated the financial impact of the RZR Turbo recall. KeyBanc analyst Scott Hamann cut his rating to sector weight, after being at overweight for at least three years. He wrote in a note to clients that the extent of the repair on the RZR Turbo is "much more complex than originally anticipated and has consequently delayed the timing of RZR shipments and resulted in increased promotional/brand wellness spend as well as a higher warranty accrual." The stock has now shed 11% year to date, while the S&P 500 has gained 4.6%.
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