Polaris Industries Inc. Earnings:
Polaris Industries Inc. reported a strong start to 2023 with a 20% increase in sales, a 172 basis points expansion in adjusted EBITDA margin, and a 55% increase in adjusted EPS compared to the previous year. The company’s performance was boosted by factors such as strong mix, higher ship volumes, favorable net price, increased share in off-road, on-road, and marine, and restocking benefits mainly in the off-road segment.
Despite a 5% decline in North American retail, it increased 14% compared to 2019. Polaris is set to launch several new products, including the Ranger XP, the all-electric Ranger XP Kinetic, and the Mighty G pontoon. The company is also focused on optimizing dealer inventory and has seen strong cash generation in Q1. The net leverage ratio stands at a healthy 1.6x.
For the rest of 2023, Polaris expects momentum in sales, share gains, and margin expansion. However, Q2 seasonality is returning but not yet in line with historical patterns. Foreign exchange (FX) rates are expected to be consistent with Q1 levels.
Polaris Industries Inc Stock Forecast:
Stock Target Advisor‘s analysis of Polaris Industries (PII:NYE) reveals a slightly bearish outlook based on 5 positive and 7 negative signals. However, 15 analysts have rated the stock as a Buy, with an average target price of USD 112.25 over the next 12 months. The stock’s dividend yield is 2.38%, making it a potentially average dividend stock for its sector. At the last closing, Polaris Industries’ stock price was USD 109.41. The stock has seen a +1.11% increase over the past week, +2.13% over the past month, and +6.06% over the last year.