What happened

Shares of Polaris Industries (NYSE:PII) climbed as much as 12.9% early Tuesday, then settled to a 5.8% gain at the close after the off-road vehicle specialist announced strong fourth-quarter 2019 results.

So what

Quarterly sales climbed 7% year over year to $1.736 billion, translating to adjusted net income of $114.9 million, or $1.83 per share. That brought full-year 2019 adjusted earnings to $6.32 per share on a roughly 12% increase in sales to $6.783 billion. By comparison, Polaris' guidance provided in October called for lower full-year earnings of $6.20 to $6.30 per share on about the same revenue.

Dark blue and black stock market charts indicating gains.

Image source: Getty Images.

CEO Scott Wine pointed to "positive fourth-quarter retail momentum in both Off-Road Vehicles and Motorcycles," as well as modest growth from Transamerican Auto Parts (TAP) stores and (for the first time in company history) more than $1 billion in full-year sales of non-TAP parts, garments, and accessories and other aftermarket revenue.

Now what

Polaris issued 2020 guidance for sales to increase roughly 2% to 4% from 2019, and for adjusted net income per share of $6.80 to $7.05. Most analysts were modeling 2020 sales near the high end of that range, but with earnings closer to the bottom end of Polaris' EPS targets.