Polaris Industries Inc. (NYSE: PII) reported strong fiscal second-quarter results on Tuesday. While its net profit skyrocketed 43%, sales for the same period showed a double digit growth across all vehicles category led motor-cycle business.
Buoyed by spectacular results, the company has upwardly revised its earnings guidance for the rest of the year to $4.05 to $4.15 a share on sales growth of 14% to 17%.
Earlier in April, Polaris’ earnings per share ranged between $3.85 and $4 and sales growth projections were between 10% and 13%.
Commenting over the results, Polaris’s CEO, Scott Wine said, “The strong second-quarter results were driven by solid strategic execution combined with end-market demand that is healthier than a year ago.”
The Company said that its profit for the quarter ending June 30 stood at $69.8 million, or 98 cents a share, up from $48.7 million, or $1.37 a share, in the same period last year.
Polaris’s sales soared 24% to $755.4 million.
Analysts polled by Thomson Reuters estimated earnings of 92 cents a share on revenue of $721 million.
The company reported that off-road vehicle sales climbed 20% to $581.1 million, boosted mainly by persistent gains made in North American market for both ATVS and side-by-side vehicles. Sales of snowmobiles also leaped 31% to $8.9 million, and sales of on-road vehicles, which included Victory motorcycles, more than doubled to $64.7 million.
Gross margin contracted to 28.7% from 29.2% a year earlier.
Shares of PII fell on Tuesday despite the strong quarterly results. At last check, the stock was down 0.14% to $71.82 on above average volume of 2.26 million.
Year-to-date, PII shares are up more than 28%, compared to a gain of 6.09% for the S&P 500.