Polaris Industries cuts guidance, shares fall 5%

NEW YORK - Polaris (NYSE:PII ) Industries Inc. (NYSE:PII) reported third-quarter earnings that missed analyst expectations and lowered its full-year outlook, sending shares down over 5% in early trading Tuesday.

The powersports vehicle manufacturer posted adjusted earnings per share of $0.73, falling short of the $0.90 analyst estimate. Revenue for the quarter came in at $1.72 billion, below the consensus forecast of $1.77 billion and down from the same period last year.

Polaris cited persistent macroeconomic headwinds, including inflation, higher interest rates, and weakening consumer confidence, as factors impacting its performance. The company also noted it shipped fewer units in response to lower retail demand and to actively manage dealer inventory.

"The retail environment remained challenging in the third quarter," said Mike Speetzen, CEO of Polaris. "We're taking decisive actions to align our production with demand and reduce dealer inventory levels."

For the full year 2024, Polaris now expects sales to decline approximately 20% compared to 2023, worse than its previous guidance of a 17% to 20% drop. The company also slashed its adjusted EPS outlook, projecting a 65% decline from 2023 levels, compared to its earlier forecast of a 56% to 62% decrease.

North American retail sales fell 7% in the quarter, with the company losing modest market share in off-road vehicles, motorcycles, and pontoons. Dealer inventory decreased 1% from the end of 2023, or 6% excluding snow and youth products.

Looking ahead to 2025, Polaris anticipates the retail environment will remain challenging but expects dealers to be more comfortable with their inventory positions. The company plans to expand its market presence through innovation and continue driving operational efficiencies.

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Source: Investing.com