UPDATE: Polaris Industries Q4 Profit Tops Estimates

reported better-than-expected earnings for the fourth quarter. The Medina, Minnesota-based company posted quarterly net income of $135.4 million, or $1.98 per share, compared to $108.7 million, or $1.56 per share, in the year-ago period. Its revenue climbed 18% to $1.27 billion. However, analysts were estimating earnings of $1.94 per share on revenue of $1.25 billion. Off-Road Vehicle sales rose 19% to $781.5 million, while Snowmobile sales surged 2% to $138.1 million in the quarter. Motorcycle division sales jumped 50% to $103.5 million, while sales in the Small Vehicles division dropped 11% to $41.2 million. Parts, Garments, and Accessories sales climbed 21% in the quarter to $210.7 million. Gross profit slipped 43 basis points to 28.8% of sales, while operating expenses widened 10% to $176.9 million in the quarter. During the fourth quarter, Polaris Industries repurchased and retired 524,000 shares of its common stock for $77.8 million. Scott Wine, Polaris' Chairman and Chief Executive Officer said, “2014 marks our fifth consecutive year of double digit sales and earnings growth, an accomplishment which testifies to the innovative spirit and dedication of the 8,000 member global Polaris team. It is inspiring to see how they overcame obstacles ranging from negative foreign exchange impacts and a weakening European economy, to highly volatile oil and crop prices, to record a 19 percent increase in both sales and net income for the full year 2014.” Polaris Industries projects full-year earnings of $7.22 to $7.42 per share. Polaris Industries shares rose 4.05% to close at $141.47 yesterday.