Why Polaris Industries Inc. Stock Headed North Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Polaris Industries  (NYSE: PII  ) were leaving the competition in the dust today, climbing as much as 10% and finishing up 9% on a strong second-quarter earnings report.

So what: The maker of vehicles such as ATV's and snowmobiles said sales jumped 20% to $1.01 billion, edging past the consensus at $1 billion, while earnings per share grew 26% to $1.42, topping estimates at $1.39. CEO Scott Wine noted sales in North America were up 15%, and motorcycle sales more than doubled to $103.1 million thanks to strong growth in India. Based on "strong demand for our existing offerings and our industry leading product innovation," the company lifted its guidance for the full year. 

Now what: Management now sees earnings for fiscal 2014 at $6.48-$6.58, up from  the previous range of $6.30-$6.45, and slightly ahead of estimates at $6.49. Last year, Polaris made a profit of $5.40 per share. The company's performance is all the more impressive when compared to struggling rivals including Arctic Cat and Harley Davidson, the last of which fell 5% today after cutting its outlook. The motorcycle market is particularly promising for Polaris, and the 15% growth in North American demonstrates strength for its Indian motorcycles at home. With its current momentum, I'd expectPolaris to keep delivering solid results in the quarters ahead.

OPEC is absolutely terrified of this game-changer
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour (That's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!


Read/Post Comments (4) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 23, 2014, at 1:13 AM, ronfab1 wrote:

    "motorcycle sales up to 103.1 million based on strong growth in India"?? Was that supposed to read strong growth in Indian (motorcycles)?

  • Report this Comment On July 23, 2014, at 7:13 AM, mikefee wrote:

    ronfab1:

    I think that you are correct to assume the author intended to write "Indian" and not "India." I wrote an article not long ago aboutt he challenges of selling motorcycles in India and China.

    Regardless, it was a nice article that highlighted several key points that led PII to one of its best quarterly reports ever.

  • Report this Comment On July 23, 2014, at 11:08 AM, ronfab1 wrote:

    I remember reading that, and thought about it as well, figuring then especially a typo. Ha! Great day for Polaris yesterday and "longs" and the Indian which is smokin' while Harley sales are flat.

  • Report this Comment On July 28, 2014, at 4:54 PM, MayTepper wrote:

    Wedbush Maintains Buy On Polaris Following The Introduction Of Major New Products http://bit.ly/1nTkLK8

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3039586, ~/Articles/ArticleHandler.aspx, 10/22/2014 9:50:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement