Polaris Shares Slide On FY21 Outlook Cut

Polaris Inc PII reported third-quarter FY21 sales of $1.96 billion, flat year-on-year, missing the analyst consensus of $2.13 billion.
North American retail sales decreased 24% for the quarter, driven by the lack of product availability due to supply chain constraints.
Adjusted gross profit margin contracted 362 basis points Y/Y to 23.9%.
The operating margin contracted 432 basis points to 7.9%, and operating income for the quarter declined 35% to $155.3 million.
Adjusted EPS of $1.98 managed to beat the analyst consensus of $1.97.
Polaris held $316.5 million in cash and equivalents as of September 30, 2021. Net cash provided by operating activities year-to-date totaled $153.4 million.
Outlook: Polaris sees FY21 sales of $8.15 billion (prior view $8.375 billion - $8.50 billion) versus the consensus of $8.51 billion.
The company expects FY21 adjusted EPS of $9.00 (prior view $9.35 - $9.60) against the consensus of $9.56.
Price Action: PII shares are trading lower by 5.16% at $119.75 in premarket on the last check Tuesday.

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