PII Earnings Prediction
The chart below shows how PII performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PII sees a +3.00% change in stock price 10 days leading up to the earnings, and a -0.96% change 10 days following the report. On the earnings day itself, the stock moves by -2.44%. This data can give you a slight idea of what to expect for the next quarter's release.
PII Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.76B
-23.32%
1.92%
Gross Margin
20.39%
-2.11%
-0.97%
Operating Margin
2.26%
-56.95%
-7.38%
Net Margin
0.62%
-86.25%
-61.25%
EPS
0.19
-89.50%
-61.22%
No Data Available
PII Earnings Analysis
Polaris Inc Corporation (PII.N) Earnings Conference Call
Positive
Dealer Inventory Reduction: Polaris achieved a 16% reduction in dealer inventory year-over-year, successfully meeting its target of reducing inventory by 15% to 20%.
Operational Efficiency Savings: The company realized over $250 million in savings through operational efficiencies, exceeding its initial goal of $150 million, which positions Polaris for improved profitability as volumes return.
Gross Profit Margin Improvement: Adjusted gross profit margin improved to 21.1%, benefiting from operational efficiencies and a favorable comparison to a one-time warranty expense from the previous year.
Market Share Gains: The launch of the new Indian Motorcycle Scout lineup contributed to modest market share gains in the heavyweight motorcycle segment, showcasing successful product innovation.
Dividend Commitment and Stability: Polaris maintained its commitment to dividends, having raised its dividend for 29 consecutive years, reflecting confidence in its long-term financial stability.
Negative
Sales Decline Impact: 4th quarter sales declined 23% compared to last year, primarily due to a strategic decision to reduce dealer inventory by shipping less product, which negatively impacted overall revenue.
Decline in Adjusted EPS: Adjusted EPS of $0.92 was down 54% year-over-year, reflecting the adverse effects of lower shipments and increased promotional activities that pressured margins.
Retail Decline in North America: North American retail was down 7% in the fourth quarter, exacerbated by a weak snow season and overall declining retail trends in the powersports industry.
Negative Absorption Impact: The company experienced approximately $140 million in negative absorption from lower build levels, resulting in higher finished goods inventory than desired at year-end.
EBITDA Margin Decline Forecast: EBITDA margin is expected to decline by 170 to 200 basis points year-over-year due to reset employee profit sharing, unfavorable product mix, and lower production targets.
PII FAQs
How does PII typically perform around its earnings report dates?
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PII Earning Call Sentiment
Earnings call transcript: Polaris Q4 2024 sees EPS beat, stock tumbles
PII.N
1.46%Positive
The earnings call highlights several challenges: a significant decline in EPS, increased competitive pressures, and unfavorable market conditions. While operational efficiencies improved margins slightly, reduced sales, negative absorption, and increased promotional activity weigh heavily. The Q&A revealed cautious industry outlooks and management's avoidance of direct answers on tariffs, adding uncertainty. Despite a consistent dividend policy, lack of share repurchases and focus on debt reduction signal financial conservatism. Considering the company's market cap and overall negative sentiment, a stock price decline of -2% to -8% is expected over the next two weeks.
