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Sep 30, 2020
Polaris Q3 2020 Earnings Report
Polaris's Q3 2020 earnings were released, revealing a strong performance driven by increased consumer demand and efficient execution, with sales and adjusted earnings exceeding pre-COVID-19 targets.
Key Takeaways
Polaris Inc. reported a strong third quarter in 2020, with sales up 10% to $1.955 billion and net income increasing by 89% to $167 million, or $2.66 per diluted share. The company benefited from strong retail demand across its ORV, Motorcycle, and Boat segments, as well as effective cost management and supply chain mitigation efforts.
Third quarter sales increased by 10% to $1.955 billion, with adjusted sales at $1.953 billion.
Net income rose by 89% to $167 million, resulting in earnings per share of $2.66.
North American retail sales increased by 15%, driven by strong performance in ORV, Motorcycles, and Snowmobiles.
The company is raising full year 2020 sales and adjusted earnings guidance.
Polaris
Polaris
Polaris Revenue by Segment
Polaris Revenue by Geographic Location
Revenue by Segment
Off-Road Revenue
CapyFin.comMotorcycles Revenue
CapyFin.comMarine Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
Given the continued strong retail environment, the Company is raising its sales and adjusted earnings guidance for the full year 2020.
Positive Outlook
- Adjusted net income is expected to be in the range of $7.15 to $7.30 per diluted share for the full year 2020 compared to adjusted net income of $6.32 per diluted share for 2019.
- Sales are now expected to be in the range of $6.925 billion to $7.0 billion, up two to three percent compared to 2019 adjusted sales of $6,783 million.
- Strong retail environment
- Raising sales guidance
- Raising adjusted earnings guidance
Challenges Ahead
- supply chain transformation
- restructuring and network realignment costs
- class action litigation-related expenses
- intangible amortization related to all acquisitions
- non-cash impairment charge related to the Company's Aftermarket segment
Revenue & Expenses
Visualization of income flow from segment revenue to net income