Polaris Inc (PII) Reports Q3 2023 Earnings: Sales Down 4%, EPS Down 17%
Third quarter sales for Polaris Inc (NYSE:PII) were $2,249 million, a decrease of 4% compared to the same period last year.
Reported diluted earnings per share from continuing operations was $2.62, down 17% versus last year.
Market share gains were observed in Off Road, On Road and Marine segments.
Powersports retail sales for the quarter were up 5% versus last year.
Released on October 24, 2023, Polaris Inc (NYSE:PII)'s third quarter earnings report shows a slight decrease in sales and earnings per share compared to the same period last year. The company attributes this to lower ship volumes and higher finance interest.
Financial Highlights
According to the report, Polaris Inc (NYSE:PII)'s third quarter sales were $2,249 million, down 4% compared to last year. The reported diluted earnings per share from continuing operations was $2.62, down 17% versus last year. The primary sales drivers were lower ship volumes and higher finance interest.
Despite the decrease in sales, Polaris Inc (NYSE:PII) saw market share gains in Off Road, On Road and Marine segments. Powersports retail sales for the quarter were up 5% versus last year, driven by double-digit growth in utility ORV, more than offsetting softness in recreational ORV and the On Road segment.
CEO Commentary
Our third quarter results were slightly lower than our expectations, as elevated manufacturing costs and an increasingly cautious consumer environment put added pressure on our results. While overall sales declined, North American retail was up five percent in the quarter and we took share across each segment of our business, which included achieving the No. 1 share position for midsize motorcycles in North America. Considering recent trends of retail softness and margin pressure, we have revised our full-year guidance and the team remains focused executing our plans to close out the year. With new products that continue to resonate with dealers and consumers, we have strengthened our position as innovative leaders in the industry while remaining laser focused on efficient operations. I have full confidence in the Polaris teams ability to continue to win share, deliver growth and drive long-term shareholder value.-- Mike Speetzen, Chief Executive Officer of Polaris Inc.
Segment Highlights
The Off Road segment saw a 6% increase in sales, driven by higher snowmobile volume partially offset by higher finance interest. The On Road segment, however, saw a 19% decrease in sales due to lower volumes. The Marine segment saw a significant decrease in sales by 48%, driven by lower volumes.
2023 Business Outlook
For 2023, Polaris Inc (NYSE:PII) has updated its sales outlook to up three percent to five percent versus its previous outlook of up three percent to up six percent versus 2022. The company now expects adjusted diluted EPS from continuing operations attributed to Polaris Inc. common shareholders to be down eight percent to down four percent versus 2022 versus the prior outlook of down two percent to up three percent.
This article first appeared on GuruFocus.
