Polaris Industries CEO: Q4 Results Good, But It's An 'Ugly Win'

Off-road vehicle manufacturer Polaris Industries Inc. (NYSE: PII) came out with spectacular results on Tuesday, January 27, which sent the shares soaring. The company reported an EPS of $1.98, compared to $1.56 that it reported in the same quarter last year.

However, Polaris Industries CEO Scott Wine is not satisfied with the results. He was on CNBC recently to discuss why he considers the results as an “ugly win.”

Why Are You Calling This An ‘Ugly Win’?

“Our results were quite good, but we certainly look at not just how our financials was [sic.], but how we got there. And we feel like some of the efforts in our factories -- and the team -- did a great job, but we can do better in terms of how we manage our inventory, how we manage our rework,” Wine said.“Ultimately, we think there’s a lot more earnings power if we can execute it a little bit better in the years ahead.”

What Are The Concerns?

When asked if he's more concerned about production targets than currency fluctuations, Wine explained, “Well, currencies are a major impact…they hurt us almost 100 basis points on gross margins last year. We expect another 40 or so in the year ahead.”“It’s a significant headwind for us, but one we feel like we have the ability to overcome. What’s within our control: fortunately, our new products -- our Indian Scout and our Slingshot -- both reported as motorcycles. The demand has been tremendous,” Wine continued.“Our ability to meet that demand in the early months has been below our expectations and we’re working very hard to make sure that the customers that want those products get them as quickly as possible.”