NEW YORK - Polaris (TSX:PIF) Inc. (NYSE:PII), a leading manufacturer of power sports vehicles, reported disappointing second-quarter results today, missing analyst estimates for both earnings and revenue.
The company's earnings per share (EPS) came in at $1.38, significantly lower than the analyst consensus of $2.25. Moreover, revenue for the quarter was reported at $1.96 billion, falling short of the expected $2.18 billion.
The company's stock fell sharply by 7.5% as Polaris cut its full-year guidance well below market expectations, indicating a challenging environment ahead.
The revised forecast for fiscal year 2024 now stands at an EPS of $3.50 to $4.00, compared to the consensus estimate of $7.50.
Moreover, Polaris anticipates full-year revenue to be between $7.2 and $7.4 billion, which is also below the analyst consensus of $8.31 billion.
The midpoint of the guidance range for EPS is $3.75, almost half of what analysts had predicted, while the revenue guidance midpoint of $7.3 billion is about 12% lower than the consensus.
The downward revision reflects the company's expectations that the current market challenges, including persistent inflation, higher interest rates, and weakening consumer confidence, will continue. Polaris also reported an 8% decrease in North America retail sales and a sequential 4% reduction in dealer inventory.
In response to the industry headwinds, Polaris is taking action by further reducing shipments and seeking operational efficiencies while actively managing OpEx. The company's CEO commented on the results, stating, "We are taking decisive actions to navigate the current market dynamics and position Polaris for long-term success."
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