Polaris Industries Outruns Estimates Again

Seth Jayson, The Motley Fool
Updated

Polaris Industries (NYS: PII) filed its 10-K on Monday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Polaris Industries beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share increased significantly.

Margins dropped across the board.

Revenue details
Polaris Industries logged revenue of $782 million. The 11 analysts polled by S&P Capital IQ hoped for sales of $757.7 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $622.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.90. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.88 per share. GAAP EPS of $0.90 for Q4 were 17% higher than the prior-year quarter's $0.77 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.9%, 220 basis points worse than the prior-year quarter. Operating margin was 12.0%, 140 basis points worse than the prior-year quarter. Net margin was 8.1%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $609.7 million. On the bottom line, the average EPS estimate is $0.76.

Next year's average estimate for revenue is $2.94 billion. The average EPS estimate is $3.85.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 187 members rating the stock outperform and 27 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Polaris Industries a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Polaris Industries is outperform, with an average price target of $72.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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