Off-Road and powersports vehicle corporation Polaris (NYSE: PII) will be reporting earnings this Tuesday before market hours. Here’s what investors should know.
Polaris beat analysts’ revenue expectations by 9.2% last quarter, reporting revenues of $1.88 billion, down 5.6% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is Polaris a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Polaris’s revenue to grow 2.7% year on year to $1.79 billion, a reversal from the 23% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Polaris has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 5.1% on average.
Looking at Polaris’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Brunswick delivered year-on-year revenue growth of 6.8%, beating analysts’ expectations by 8.9%, and Nike reported revenues up 1.1%, topping estimates by 6.5%. Brunswick traded up 10.6% following the results while Nike was also up 6.5%.
Read our full analysis of Brunswick’s results here and Nike’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Polaris is up 19% during the same time and is heading into earnings with an average analyst price target of $57.55 (compared to the current share price of $70.83).
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