Polaris Profit Up 39 Percent On Surge In Snowmobile Sales

News, Polaris

By Melodie Warner

MarketWatch

Polaris Industries Inc.'s (NYSE:PII) third-quarter earnings rose 39 percent as all of its product lines saw double-digit percentage sales increases.

The company also raised its full-year earnings estimate to between $4.32 and $4.37 a share on 19 percent to 20 percent sales growth. Its previously increased July forecast was for per-share earnings of $4.05 to $4.15 on 14 percent to 17 percent sales growth.

The maker of all-terrain vehicles, like snowmobiles, has seen its revenue and profits increase by double-digit percentages for more than two years, thanks in part to strong demand for its off-road vehicles and motorcycles in North America.

Polaris reported a profit of $94.3 million, or $1.33 a share, up from $67.6 million, or 95 cents, a year earlier. Sales jumped 21 percent to $879.9 million.

Analysts polled by Thomson Reuters had most recently forecast earnings of $1.20 a share on revenue of $831 million.

Gross margin improved to 29.5 percent from 28.3 percent.

Off-road vehicle sales, the company's largest top-line contributor, rose 18 percent to $573 million. Snowmobiles sales climbed 21 percent to $114.9 million while on-road vehicle sales jumped 78 percent to $63.4 million. Sales of parts, garments and accessories increased 14 percent to $128.6 million.

Shares closed Wednesday at $85.28 and were inactive premarket. The stock has risen 52 percent so far this year.

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