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.

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  • 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:


    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.

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Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

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8/31/2015 4:05 PM
PII $129.87 Down -1.35 -1.03%
Polaris Industries CAPS Rating: *****