Shares of Polaris Industries ( PII -3.69% ) were up 10.3% as of 2:50 p.m. EDT Tuesday after the off-road vehicle and motorcycle specialist announced strong quarterly results.
More specifically, Polaris' quarterly revenue climbed 18% year over year to $1.779 billion, with adjusted net income of $107.5 million, or $1.73 per share. Both the top and bottom lines arrived above analysts' consensus expectations for earnings of $1.65 per share on revenue closer to $1.77 billion.
Polaris Chairman and CEO Scott Wine noted the company outperformed even in the face of tariffs, a "very wet spring," and aggressive industry promotions.
The motorcycle segment set the pace for the company, with sales increasing 15% year over year to $196.8 million. Meanwhile, sales in the company's core off-road vehicles/snowmobiles segment climbed 6% to $1.049 billion, global adjacent market sales rose 7% to $121.9 million, aftermarket sales grew 1% to $228.9 million, and revenue from boats -- consisting of sales from Polaris' acquisition of Boat Holdings last year -- arrived at $182.4 million.
"The strength of our industry-leading brands and vehicles enabled us to gain share in Indian Motorcycles and drive growth in Side-by-Sides with RANGER and RZR, although our decision to assume price leadership did impact volume, specifically in our lower margin youth and value segments," Wine elaborated. "We are encouraged by our market share gains and year-to-date growth in Boats, as well as the continued improvement at [Transamerican Auto Parts], where retail store sales growth was up nicely."
For all of 2019, Polaris now expects EPS in the range of $6.10 to $6.30 (up from the $6.05 to $6.30 EPS range it previously forecast), with sales increasing 12% to 13% (up from the prior 11% to 13% outlook range).
In the end, there was little not to like about this modestly better-than-expected quarter, and Polaris stock is responding in kind.