Polaris Industries Inc.'s stock tumbled 11% in premarket trade Thursday, after the off-road vehicle (ORV) maker slashed its 2015 profit and sales growth outlooks, citing weaker-than-expected demand for ORVs and snowmobiles, which was hurt by unseasonably warm weather. The company now expects 2015 earnings per share to rise 1% to 2% from a year ago, compared with a previous growth forecast of 11% to 12%. Revenue is now expected to grow 4% to 5%, below its previous projection of 10% to 11%. As a result of the weak outlook, the company said it would cut Q4 ORV shipments "significantly," leaving North American ORV dealer inventory below 2014 levels. "We expected the fourth quarter to present a challenging retail environment for ORVs and snowmobiles, but consumer traffic and retail sales have slowed beyond previous expectations," said Chief Executive Scott Wine. The stock had dropped 27% over the past three months through Wednesday, while the S&P 500 has gained 4.2%.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below