Polaris Reports Better-Than-Expected Q4 Earnings Amid Cautious Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19h ago
0mins
Source: Benzinga
- Earnings Beat: Polaris reported adjusted Q4 earnings per share of $0.08, surpassing the Street's expectation of $0.06, with quarterly sales reaching $1.922 billion, a 9% year-over-year increase driven by strong shipment volumes across core businesses.
- Margin Pressure: Gross profit rose to $384.2 million; however, the adjusted gross profit margin decreased by 77 basis points to 20.3%, primarily due to tariffs and net pricing pressures, indicating challenges in cost management.
- Cautious Outlook: Polaris forecasts fiscal 2026 adjusted earnings between $1.50 and $1.60 per share, below the analyst consensus of $1.74, while projecting sales of $7.224 billion to $7.367 billion, reflecting uncertainty in future market conditions.
- Market Reaction: Polaris shares fell 6.66% to $64.51 in premarket trading, indicating investor concerns regarding the company's future profitability, particularly in light of anticipated tariff pressures.
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.
