Polaris Inc PII reported a third-quarter FY23 sales decline of 4% year-on-year to $2.25 billion.
The company missed the analyst consensus estimate of $2.25 billion.
Total Company sales in the third quarter of 2023 were negatively impacted by lower shipment volumes and higher finance interest.
Sales from Off-Road segment rose 6%, On Road segment dropped 19%, and Marine slumped 48%.
Adjusted EPS of $2.71 beat the analyst consensus estimate of $2.69.
Gross profit for the quarter increased 6.5% Y/Y to $505 million, and the margin contracted by 127 basis points to 22.6%.
The operating expenses increased 3.5% to $328 million.
The company held $295.3 million in cash and equivalents as of September 30, 2023. The company's operating cash flow for the nine months totaled $376 million.
Adjusted EBITDA margin for the quarter contracted 110 basis points to 12.6%.
"Elevated manufacturing costs and an increasingly cautious consumer environment put added pressure on our results,” said Polaris CEO Mike Speetzen.
Outlook: Polaris cut its FY23 sales outlook to +3% - +5% (from 3% - 6% prior). It slashed adjusted EPS guidance to -8% - -4% (-2% - +3% prior).
Price Action: PII shares are trading lower by 4.33% at $88 in premarket on Tuesday.
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