NYSE$PII

Polaris Industries Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Polaris' third quarter earnings were released, revealing a 32% increase in sales compared to the previous year, driven by higher volumes, strong pricing, and favorable mix, despite continued supply chain challenges and softness in Recreation Off-Road demand.

Polaris Inc. reported a strong third quarter with sales up 32% to $2,341 million. Diluted EPS increased by 69% to $3.17, and adjusted diluted EPS rose by 64% to $3.25. The results were driven by increased shipment volumes, higher pricing, and favorable product mix, with North America sales increasing by 35% and international sales by 10%.

  • Third quarter sales were $2,341 million, up 32 percent compared to last year
  • Third quarter reported diluted earnings per share from continuing operations was $3.17, up 69 percent versus last year; adjusted diluted earnings per share from continuing operations was $3.25, up 64 percent versus last year
  • Primary drivers in the quarter were higher volumes, strong pricing and favorable mix, supported by modest sequential improvement in supply chain
  • Retail sales for the quarter were down eight percent versus last year despite strong performance in Motorcycles, primarily driven by continued supply chain challenges and softness in Recreation Off-Road demand

Headline financials

Total Revenue

$2.34B

Previous: $1.96B+19.4%
EPS (adj)

$3.25

Previous: $1.98+64.1%
Gross Profit Margin

23.9%

No prior period
Capital Expenditures

-$194M

Previous: -$199M+2.9%
Free Cash Flow

-$7.3M

Previous: -$84.7M+91.4%
Net Income

$186M

Previous: $115M+62.6%
Operating Income

$254M

Previous: $155M+63.7%
Gross Profit

$559M

Previous: $466M+20.1%
Cash & Equivalents

$319M

Previous: $317M+0.8%
Total Assets

$5.09B

Previous: $4.87B+4.6%
Stock-Based Comp

$18.7M

Previous: $20M-6.5%

Revenue & EPS history

Polaris · Revenue · Quarterly

$2.34B

Q3 2022+19.4%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Polaris · $2.34B total across 3 segments · Q3 2022

  • Off-Road
    $1.75B+44.5%
  • On-Road
    $334M
  • Marine
    $260M

Forward guidance

The Company now expects 2022 sales to increase 15 percent to 16 percent versus prior guidance of 13 percent to 16 percent. The Company expects adjusted diluted EPS from continuing operations attributed to Polaris Inc. common shareholders to be in the range of $10.10 to $10.30 for the full year 2022, unchanged from prior guidance.

Tailwinds

  • Expected 2022 sales increase of 15% to 16%
  • Adjusted diluted EPS from continuing operations expected between $10.10 and $10.30 for 2022
  • Strong pricing strategy
  • Easing supply chain headwinds
  • Diverse portfolio

Headwinds

  • Continued supply chain challenges
  • Softness in Recreation Off-Road demand
  • Potential shifts in consumer behavior
  • New market dynamics
  • Recessionary conditions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-1.0%

Avg return

Earnings day

-1.5%

Avg return

5 days after

+0.2%

Avg return

30 days after

41%

28 / 69 earnings

Positive

+15.2%

Q3 2017

Best reaction

-15.8%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.8%+8.8%+14.9%
Q4 2025-4.4%-7.6%-7.6%
Q3 2025-5.9%-7.1%-6.7%
Q2 2025-2.7%-6.4%-2.6%
Q1 2025+0.3%+3.2%+18.2%
Q4 2024-5.0%-14.9%-12.5%
Q3 2024-13.1%-11.1%-16.5%
Q2 2024-11.2%+0.7%+0.8%
Q1 2024-3.4%-5.0%-6.8%
Q4 2023-3.0%-2.4%+0.0%
Q3 2023-5.6%-7.3%-2.3%
Q2 2023+2.0%+0.2%-17.5%
Q1 2023-3.1%-0.7%-2.9%
Q4 2022+10.5%+10.8%+8.3%
Q3 2022+5.8%+7.8%+19.4%
Q2 2022-1.5%+3.8%+7.8%
Q1 2022-9.0%-11.1%-1.5%
Q4 2021+1.1%+1.9%+7.3%
Q3 2021-7.1%-9.0%-3.1%
Q2 2021-7.4%-5.7%-11.4%
Q1 2021-4.9%-3.4%-8.8%
Q4 2020-1.8%-2.4%+1.6%
Q3 2020+0.9%-0.8%+4.5%
Q2 2020+8.5%+5.8%+6.3%
Q1 2020+11.2%-2.8%+31.6%
Q4 2019+3.9%+0.9%-8.4%
Q3 2019+11.2%+10.9%+6.5%
Q2 2019+15.0%+13.2%-0.1%
Q1 2019-2.2%-1.5%-12.6%
Q4 2018-0.3%+2.0%+0.5%
Q3 2018-3.3%-5.6%+4.2%
Q2 2018-12.0%-13.5%-9.9%
Q1 2018-13.0%-13.5%-5.8%
Q4 2017-15.8%-17.9%-16.4%
Q3 2017+15.2%+11.2%+15.6%
Q2 2017+2.0%+1.5%-3.4%
Q1 2017+1.5%+2.5%+2.1%
Q4 2016+2.1%-0.9%-1.0%
Q3 2016-6.2%-7.8%+8.7%
Q2 2016+11.2%+11.4%+6.5%
Q1 2016+4.5%
Q4 2015-12.6%
Q3 2015-8.5%
Q2 2015-6.7%
Q1 2015+0.4%
Q4 2014+3.6%
Q3 2014-1.2%
Q2 2014+9.8%
Q1 2014-1.9%
Q4 2013-4.9%
Q3 2013-2.4%
Q2 2013+4.0%
Q1 2013+0.8%
Q4 2012-6.0%
Q3 2012+3.2%
Q2 2012-0.6%
Q1 2012+2.6%
Q4 2011-0.7%
Q3 2011-0.0%
Q2 2011-12.4%
Q1 2010+0.5%
Q1 2011-0.1%
Q4 2010-1.1%
Q4 2008-1.1%
Q3 2010+0.0%
Q3 2009+0.0%
Q2 2010-2.9%
Q2 2009-2.9%
Q4 2009-2.9%

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