Polaris 3rd Quarter Profit Up On Higher Selling Prices.

Cyril-Huze-PolarisPolaris Industries Inc. said Tuesday that its third-quarter net income rose 20 percent, buoyed by higher selling prices and lower product costs.

The snowmobile and ATV maker also increased its full-year earnings from continuing operations and revenue forecasts.

Chairman and CEO Scott Wine said in a statement that there’s continued demand for the Minneapolis company’s existing products. He added that new model year 2014 vehicles and accessories are arriving at dealers and receiving positive customer feedback.

Polaris earned $113.1 million, or $1.59 per share, for the three months ended Sept. 30. That’s up from $94.3 million, or $1.33 per share, a year earlier. Earnings from continuing operations were $1.64 per share. Revenue rose to $1.1 billion from $879.9 million. The company said that this was the first time in its history that quarterly revenue topped $1 billion.

Snowmobile sales gained 25 percent, while off-road vehicle sales climbed 23 percent. Parts, garments and accessories sales rose 37 percent. In the small vehicles division, sales more than doubled thanks to the Aixam Mega acquisition. Sales for the motorcycles unit fell 6 percent.

International sales rose 38 percent, while North American retail sales climbed 12 percent. Polaris now expects full-year earnings from continuing operations of $5.30 to $5.37 per share. Its prior guidance was for $5.20 to $5.30 per share. The company now anticipates 2013 revenue will rise 15 percent to 16 percent, up from 13 percent to 15 percent.

The stock rose $1.47, or 1.1 percent, to $137.50 in premarket trading. It’s up 58 percent for the year to date.

10 Responses to “Polaris 3rd Quarter Profit Up On Higher Selling Prices.”

  1. 1 BobS Oct 22nd, 2013 at 12:51 pm

    Motorcycle sales down 6%. Bummer. As a Victory fan I’ve wondered about this. Product development seemed to halt right about the time they started working on Indian. Although about that same time they started an expansion to double the R&D facility in MN so I hope to see a lot more product development in the near future. As a stock holder I can’t be anything but pleased.

  2. 2 X H-D Rider Oct 22nd, 2013 at 1:10 pm

    Am very happy for your growth.
    BUT do you have to mark up replacement parts up by 65% and 75%. Gee one spark plug wire is $56 bucks that must be a 95% mark up or a voltage regulator $165 whats that 75% mark up.
    Your going to start forcing people to go to other brands.
    Come on people we know your out to make money but do you have to kill us doing it.

  3. 3 Highrider Oct 22nd, 2013 at 7:25 pm

    I ( maybe prematurely) sold off my stock today to keep some profit, as with a 6% motorcycle sales decline is a problem , which I believe Polaris has allowed to happen for the following reasons. I believe the stock has been rising due to the Indian unveiling, now I expect some enthusiasm to wane a bit or a lot , time will tell.

    My reasons and points of contention
    1. Poor Dealerships ( Especially when combined with the metric dealerships, there IS no identity for Polaris here and foot traffic is not the type to want to buy Victory’s)
    2. No new stock in these Dealerships
    3. Over Priced motorcycles for too many years
    4.No accessories to really chose from
    5 Dealerships who do not stock any accessories, as they are Too EXPENSIVE (IMHO)
    6. Color selection is Boring and Gaudy
    7 No ( Harley type HOG experience) this is a must for many riders who enjoy riding and belonging, without joining a Biker Club , many here guff at this, but it is a reality and good marketing and cultivating the customer base.
    8. Indian, while promising , could have had some models with more vibrant paint ( when I saw the Indian colors, I was disappointed how boring the color choice was , could have been so much more vibrant,flashy and appealing)

    These issues are common place and yet Polaris does not seem to have any answers for these issues.
    I was surprised by the motorcycle numbers, and being cautious, will wait to see what / Polaris does, but so far they seem to be getting slower and deafer

    I actually think their window of opportunity for Polaris is a few short years at best, Hopefully they wise up and quickly

  4. 4 BigWave916 Oct 23rd, 2013 at 7:14 am

    @Highrider…did you miss the part about 3rd quarter earnings being up by 20%? 2nd quarter earnings were up also. Not surprised that on a motorcycle blog one would focus on the 6% drop in motorcycle sales, but motorcycles are only about 15% of Polaris products. They are financially healthy and I am resisiting the urge to take profit at $135 a share after buying in at $88 because I think they’ve still got positive growth in their future, both in the ATV/Snowmachine/Off Road vehicle business and in the motorcycle segment.

  5. 5 baggerdude Oct 23rd, 2013 at 7:51 am

    This A.M. Polaris down over $5.00 on stock market. I think the Indian bubble is leaking. Bought at $83, maybe time to take the profits and say thanks!

  6. 6 P. Hamilton Oct 23rd, 2013 at 8:36 am

    You all seem to forget that Indians were not sold during the 3rd quarter, and that many Victory riders may have waited and postponed a purchase waiting for the Chiefs to arrive.

  7. 7 BobS Oct 23rd, 2013 at 8:40 am

    baggerdude, read your post and think about it for a minute. Your second sentence is a guess pulled out of thin air and the very next sentence contradicts that with a much more reasonable explanation! BTW, as I type this my ticker shows PII up 1.29. I guess the profit takers done did some taking and are jumping back in.

  8. 8 Blackmax Oct 23rd, 2013 at 5:58 pm

    They will improve & the person who can wait, will profit
    A lot of people DID wait for the new Indian to be revealed
    (Me Included) But Polaris has deep pockets & is putting $$$ into R & D
    Now it’s just a matter to see (and get) bikes into the showroom,
    bikes to sell from the showroom & all the branded products that goes with it
    Rome was not built in a day & I think that both Indian & Victory
    are going to be around for the long haul

  9. 9 Hungouver Oct 24th, 2013 at 5:57 am

    Polaris sells a lot to military and govt. something HD cannot claim anymore. It really rounds out their offerings and value. Bikes are just what we get to benefit from!

  10. 10 Highrider Oct 25th, 2013 at 9:34 pm

    Guys don’t get me wrong, I love the Victory Motorcycles and believe Indian will only add to the bottom line, but my list of issues ARE real and Polaris desperately needs to change how they want to sell.
    IMHO opinion, they have to match the Harley Dealers and IF they do, they will be successful and probably very nicely so.

    I bought stock at the $60 dollar range and kept adding as the Indian suspense kept moving forward
    I will watch for another few quarters and may buy back in, but the other equipment sales won’t bring the stock traders masses back like the motorcycle brands sales could push the stock price.

    I will write Mr. Wine and at least offer my advise

    Bottom line, I want Polaris to succeed, but their marketing and sales targets for motorcycle customers are key

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Cyril Huze