NYSE$PII

Polaris Industries Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Polaris reported a one percent increase in sales and a decrease in net income for the fourth quarter of 2021.

Polaris Inc. released its fourth-quarter 2021 results, reporting a one percent increase in sales to $2,170 million compared to the fourth quarter of 2020. However, the company's net income decreased to $87 million, or $1.40 per diluted share, compared to $199 million, or $3.15 per diluted share, in the same period of the previous year. Adjusted net income for the quarter was $134 million, or $2.16 per diluted share, compared to $211 million, or $3.34 per diluted share in the 2020 fourth quarter.

  • Fourth quarter reported and adjusted sales increased one percent to $2,170 million
  • Fourth quarter reported net income was $1.40 per diluted share; adjusted net income for the same period was $2.16 per diluted share
  • GEM and Taylor-Dunn businesses were divested during the quarter
  • Polaris announced full year 2022 sales and adjusted earnings guidance with full year adjusted net income in the range of $10.10 to $10.40 per diluted share and full year sales up in the range of 12% to 15%

Headline financials

Total Revenue

$2.17B

Previous: $2.16B+0.6%
EPS (adj)

$2.16

Previous: $3.34-35.3%
Capital Expenditures

$99M

Previous: $82.1M+20.6%
Free Cash Flow

$41.3M

Previous: $261M-84.2%
Net Income

$86.8M

Previous: $199M-56.3%
Operating Income

$155M

Previous: $263M-41.1%
Gross Profit

$445M

Previous: $550M-19.1%
Cash & Equivalents

$509M

Previous: $635M-19.8%
Total Assets

$5.05B

Previous: $4.63B+9.0%
Stock-Based Comp

$15.4M

Previous: $5.9M+161.0%

Revenue & EPS history

Polaris · Revenue · Quarterly

$2.17B

Q4 2021+0.6%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Polaris · $1.61B total across 2 segments · Q4 2021

  • Off-Road
    $1.43B-2.5%
  • Marine
    $180M

Forward guidance

The Company announced its sales and adjusted earnings guidance for the full year 2022. Sales are expected to increase to the range of $9,215 million to $9,455 million, an increase of 12 percent to 15 percent over 2021 adjusted sales of $8,198 million and adjusted net income is expected to be in the range of $10.10 to $10.40 per diluted share for the full year 2022, an increase of 11 to 14 percent compared to adjusted net income of $9.13 per diluted share for 2021.

Tailwinds

  • Sales are expected to increase to the range of $9,215 million to $9,455 million
  • Sales are expected to increase 12 percent to 15 percent over 2021 adjusted sales of $8,198 million
  • Adjusted net income is expected to be in the range of $10.10 to $10.40 per diluted share for the full year 2022
  • Adjusted net income is expected to increase of 11 to 14 percent compared to adjusted net income of $9.13 per diluted share for 2021
  • Innovation remains the cornerstone of our culture, supported by the introduction of several new category-defining vehicles this year

Headwinds

  • Supply chain constraints are expected to continue.
  • Higher input costs are expected to persist.
  • The company is facing disruptions in manufacturing facilities.
  • The company is incurring acquisition integration costs.
  • The company is exposed to risks related to product recalls and/or warranty expenses.

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 Q4 2021

Historical avgQ4 2021

-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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