The 10-second takeaway
For the quarter ended March 31 (Q1), Polaris Industries met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share increased significantly.
Gross margins increased, operating margins were steady, net margins increased.
Polaris Industries booked revenue of $745.9 million. The 12 analysts polled by S&P Capital IQ looked for net sales of $753.4 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $680.9 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 $1.07. The 12 earnings estimates compiled by S&P Capital IQ predicted $1.01 per share. GAAP EPS of $1.07 for Q1 were 26% higher than the prior-year quarter's $0.85 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 30.0%, 30 basis points better than the prior-year quarter. Operating margin was 13.5%, much about the same as the prior-year quarter. Net margin was 10.0%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $844.9 million. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $3.66 billion. The average EPS estimate is $5.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 292 members out of 330 rating the stock outperform, and 38 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give Polaris Industries a green thumbs-up, and nine 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 $99.92.
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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. The Motley Fool recommends 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.