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Dec 31, 2020
Polaris Q4 2020 Earnings Report
Polaris's Q4 2020 performance reflected a significant increase in sales and net income, driven by strong retail demand and industry tailwinds.
Key Takeaways
Polaris Inc. reported a strong finish to 2020, with Q4 sales up 24% to $2,156.3 million and net income increasing by 101% to $198.8 million. The growth was fueled by robust retail demand across ORV, Motorcycles, Snowmobiles, and Boats segments. The company's full-year operating cash flow reached a record $1.019 billion, and 2021 sales and adjusted earnings guidance were issued.
Reported and adjusted sales for the fourth quarter increased by 24% to $2,156 million.
Reported net income for the fourth quarter was $3.15 per share, while adjusted net income was $3.34 per share.
North American retail sales increased by 28% during the quarter, with notable strength in ORV, Motorcycles, and Snowmobiles.
Gross profit margin for the fourth quarter was 25.5%, representing a 112 basis points increase year-over-year.
Polaris
Polaris
Polaris Revenue by Segment
Polaris Revenue by Geographic Location
Revenue by Segment
Off-Road Revenue
CapyFin.comMotorcycles Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
Polaris anticipates sales to be in the range of $7,950 million to $8,150 million, reflecting a 13% to 16% increase over 2020. Adjusted net income is projected to be between $8.45 and $8.75 per diluted share for the full year 2021.
Positive Outlook
- Sales are expected to increase to the range of $7,950 million to $8,150 million, an increase of 13 percent to 16 percent over 2020 adjusted sales of $7,025 million
- Adjusted net income is expected to be in the range of $8.45 to $8.75 per diluted share for the full year 2021 compared to adjusted net income of $7.74 per diluted share for 2020.
Challenges Ahead
- Full year 2021 earnings guidance includes an increase in tariff costs of approximately $40 million for the full year 2021 as exemptions and refunds received in 2020 are not contemplated to continue into 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income