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Mar 31, 2021
Polaris Q1 2021 Earnings Report
Polaris' first quarter results were released, revealing a significant increase in sales and earnings, driven by strong retail demand and industry tailwinds.
Key Takeaways
Polaris Inc. reported a strong first quarter in 2021, with sales up 39% to $1,951 million. Net income was $134 million, or $2.11 per diluted share, compared to a net loss in the same quarter last year. The company benefited from strong retail demand and increased its full-year sales and earnings guidance.
Reported and adjusted sales increased by 39% reaching $1,951 million.
Reported net income was $2.11 per share, and adjusted net income was $2.30 per share.
Gross profit margin increased by 378 basis points due to lower promotional costs.
North American retail sales surged by 70%, driven by broad-based strength across all business segments.
Polaris
Polaris
Polaris Revenue by Segment
Revenue by Segment
Off-Road Revenue
CapyFin.comMotorcycles Revenue
CapyFin.com Forward Guidance
Polaris is increasing its full year sales and earnings guidance, expecting adjusted net income to be in the range of $9.00 to $9.25 per diluted share, with sales up 18% to 21%.
Positive Outlook
- Continued strong retail demand is expected.
- Full year 2021 sales are now expected to be up 18% to 21% over the prior year.
- Adjusted net income is expected to be in the range of $9.00 to $9.25 per diluted share.
- Strong performance in the first quarter of 2021.
- Overall positive outlook for the full year 2021.
Challenges Ahead
- Supply chain transformation costs.
- Restructuring and network realignment costs.
- Class action litigation-related expenses.
- Unpredictable acquisition integration costs.
- Difficulties in forecasting certain items required to develop comparable GAAP financial measures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income