Polaris Reports 9% Sales Growth in Q4
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21h ago
0mins
Source: seekingalpha
- Sales Growth: Polaris reported Q4 worldwide sales of $1.92 billion, a 9% increase, with North American sales at $1.62 billion, representing 84% of total sales and up 10% year-over-year, indicating strong market demand and effective operational strategies.
- International Performance: International sales rose 4% to $299 million, accounting for 16% of total sales, which, while modest, reflects the company's steady expansion and growing brand influence in global markets.
- Gross Margin Decline: Despite sales growth, Polaris' gross profit margin fell by 40 basis points to 20.0%, with adjusted gross margin down 77 basis points, primarily due to tariffs and net pricing pressures, highlighting challenges to profitability amid rising costs.
- Future Outlook: Polaris anticipates sales growth of 1% to 3% in 2026, with full-year EPS expected between $1.50 and $1.60, below the consensus of $1.72, reflecting the company's cautious stance amid market uncertainties.
Analyst Views on PII
Wall Street analysts forecast PII stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PII is 66.67 USD with a low forecast of 57.00 USD and a high forecast of 72.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
0 Buy
10 Hold
0 Sell
Hold
Current: 69.110
Low
57.00
Averages
66.67
High
72.00
Current: 69.110
Low
57.00
Averages
66.67
High
72.00
About PII
Polaris Inc. is engaged in the design, engineering, manufacturing and marketing of powersports vehicles. The Company also designs and manufactures or sources parts, garments and accessories (PG&A), which includes aftermarket accessories and apparel. Its Off Road segment consists of off-road vehicles (ORVs) and snowmobiles. Its On Road segment designs and manufactures motorcycles, moto-roadsters, light-duty hauling, and passenger vehicles. Its Marine segment designs and manufactures boats that are designed to compete in key segments of the recreational marine industry, specifically pontoon and deck boats. Its product line-up includes the RANGER, RZR and Polaris XPEDITION and GENERAL side-by-side off-road vehicles; Sportsman all-terrain ORVs; military and commercial off-road vehicles; snowmobiles; Indian Motorcycle mid-size and heavyweight motorcycles; Slingshot moto-roadsters; Aixam quadricycles; Goupil electric vehicles; and pontoon and deck boats, including Bennington pontoons.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
