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Sep 30, 2022
Polaris Q3 2022 Earnings Report
Polaris' third quarter earnings were released, revealing a 32% increase in sales compared to the previous year, driven by higher volumes, strong pricing, and favorable mix, despite continued supply chain challenges and softness in Recreation Off-Road demand.
Key Takeaways
Polaris Inc. reported a strong third quarter with sales up 32% to $2,341 million. Diluted EPS increased by 69% to $3.17, and adjusted diluted EPS rose by 64% to $3.25. The results were driven by increased shipment volumes, higher pricing, and favorable product mix, with North America sales increasing by 35% and international sales by 10%.
Third quarter sales were $2,341 million, up 32 percent compared to last year
Third quarter reported diluted earnings per share from continuing operations was $3.17, up 69 percent versus last year; adjusted diluted earnings per share from continuing operations was $3.25, up 64 percent versus last year
Primary drivers in the quarter were higher volumes, strong pricing and favorable mix, supported by modest sequential improvement in supply chain
Retail sales for the quarter were down eight percent versus last year despite strong performance in Motorcycles, primarily driven by continued supply chain challenges and softness in Recreation Off-Road demand
Polaris
Polaris
Polaris Revenue by Segment
Polaris Revenue by Geographic Location
Revenue by Segment
Off-Road Revenue
CapyFin.comMarine Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The Company now expects 2022 sales to increase 15 percent to 16 percent versus prior guidance of 13 percent to 16 percent. The Company expects adjusted diluted EPS from continuing operations attributed to Polaris Inc. common shareholders to be in the range of $10.10 to $10.30 for the full year 2022, unchanged from prior guidance.
Positive Outlook
- Expected 2022 sales increase of 15% to 16%
- Adjusted diluted EPS from continuing operations expected between $10.10 and $10.30 for 2022
- Strong pricing strategy
- Easing supply chain headwinds
- Diverse portfolio
Challenges Ahead
- Continued supply chain challenges
- Softness in Recreation Off-Road demand
- Potential shifts in consumer behavior
- New market dynamics
- Recessionary conditions
Revenue & Expenses
Visualization of income flow from segment revenue to net income