The 10-second takeaway
For the quarter ended June 30 (Q2), Polaris Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins expanded, net margins improved.
Polaris Industries logged revenue of $755.4 million. The 11 analysts polled by S&P Capital IQ anticipated a top line of $723.9 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $613.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.98. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.92 per share. GAAP EPS of $0.98 for Q2 were 42% higher than the prior-year quarter's $0.69 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.5%, 30 basis points worse than the prior-year quarter. Operating margin was 14.5%, 210 basis points better than the prior-year quarter. Net margin was 9.1%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $823.4 million. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $3.09 billion. The average EPS estimate is $4.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 254 members out of 285 rating the stock outperform, and 31 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Polaris Industries a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Polaris Industries is outperform, with an average price target of $89.64.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Polaris Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.