What happened

Shares of Polaris Industries Inc. (NYSE:PII), were up 14.6% as of 1:30 p.m. EDT Tuesday after the motorcycle, snowmobile, and off-road vehicle specialist announced strong third-quarter 2017 results and increased its full-year guidance.

More specifically on the former, Polaris' adjusted quarterly revenue climbed 25% year over year to $1.48 billion, including a 13% increase in Polaris North American unit retail sales. Roughly half of Polaris' overall revenue increase stemmed from organic growth. On the bottom line, adjusted net income nearly tripled on a year-over-year basis to $93.5 million, or $1.46 per diluted share. Both figures were well ahead of investors' expectations for adjusted earnings of $1.23 per share on revenue of $1.4 billion.

A man riding a Polaris Indian motorcycle over a bridge.

Image source: Polaris Industries.

So what

"Our emphatic return to profitable growth in the third quarter was a testament to the power of the Polaris brand, the strength of our dealer network, and the competitive drive of the Polaris team," said Polaris Chairman and CEO Scott Wine. "During the quarter, strong retail growth in both North America and nearly all of our International markets drove record sales and highlighted our ongoing product innovation, improving product quality and sharpened execution."

Perhaps most encouraging, Polaris delivered its strong bottom-line growth despite higher-than-expected warranty and rework costs, as well as "complications" from Hurricanes Harvey and Irma.

Now what

As such, Polaris increased it's full-year guidance to call for adjusted sales to increase in the range of 18% to 19% from 2016 (up from its previously raised guidance for 12% to 14% growth), and for adjusted net income per share in the range of $4.75 to $4.85 (up from the prior range of $4.35 to $4.50).

In the end, this was a straightforward beat-and-raise scenario from Polaris that rightly leaves investors excited.

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