Polaris Q4 Bottom-Line Beats Street View; Provides Moderate FY23 Forecast

Polaris Inc PII reported a fourth-quarter FY22 sales growth of 21% year-on-year to $2.404 billion, missing the consensus of $2.41 billion.
Retail sales were down 6% versus last year, despite improving performance in utility Off Road and Indian Motorcycle, offset by softness in recreational Off Road demand.
Sales from the Off-Road segment increased 19%, the On-Road segment rose 29, and Marine jumped 36%.
Adjusted EPS of $3.46 beat the analyst consensus of $3.27.
Gross profit for the quarter increased 42.6% Y/Y to $573 million, and the margin expanded by 367 basis points to 23.8%.
Operating margin expanded 260 basis points to 10.6%, and operating income for the quarter shot up 60.6% to $256.9 million.
Adjusted EBITDA margin expanded 272 basis points to 14%.
The company held $339.7 million in cash and equivalents as of Dec. 31, 2022.
Outlook: Polaris sees FY23 sales to be flat to up 5%. The company expects FY23 adjusted EPS from continuing operations to be down 3% to up 3%.
Price Action: PII shares are trading higher by 5.28% at $112.25 on the last check Tuesday.

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