Polaris Q2 Revenue Misses Estimate On Supply Chain Hurdles

  • Polaris Inc PII reported a second-quarter FY22 sales growth of 8% year-on-year to $2.06 billion, missing the consensus of $2.18 billion.
  • Retail sales were down 23% versus last year, primarily driven by supply chain challenges.
  • Sales from the Off-Road segment increased 7%, the On-Road segment remained flat, and Marine jumped 38%.
  • Adjusted EPS of $2.42 beat the analyst consensus of $2.10.
  • The gross profit for the quarter fell 4.6% Y/Y to $474.4 million and the margin contracted by 300 basis points to 23%.
  • The operating margin contracted 160 basis points to 9.4%, and operating income for the quarter decreased 8.4% to $193.1 million.
  • The company held $314.2 million in cash and equivalents as of June 30, 2022.
  • Outlook: Polaris sees FY22 sales to increase 13% - 16% versus prior guidance of 12% - 15%.
  • The company expects FY22 adjusted EPS of $10.10 - $10.30 (prior view $10.10 - $10.40), ahead of the consensus of $9.93.
  • Price Action: PII shares are trading lower by 1.20% at $111.64 on the last check Tuesday.
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