Earnings Preview: Polaris

Polaris PII is preparing to release its quarterly earnings on Tuesday, 2024-10-22. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Polaris to report an earnings per share (EPS) of $0.93.

Anticipation surrounds Polaris's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

During the last quarter, the company reported an EPS missed by $0.85, leading to a 6.75% drop in the share price on the subsequent day.

Here's a look at Polaris's past performance and the resulting price change:

Stock Performance

Shares of Polaris were trading at $82.55 as of October 18. Over the last 52-week period, shares are down 8.84%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analyst Opinions on Polaris

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Polaris.

Analysts have given Polaris a total of 8 ratings, with the consensus rating being Neutral. The average one-year price target is $83.25, indicating a potential 0.85% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Acushnet Hldgs, Brunswick and YETI Holdings, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Neutral trajectory for Acushnet Hldgs, with an average 1-year price target of $72.0, indicating a potential 12.78% downside.
• The prevailing sentiment among analysts is an Buy trajectory for Brunswick, with an average 1-year price target of $90.5, implying a potential 9.63% upside.
• The consensus outlook from analysts is an Neutral trajectory for YETI Holdings, with an average 1-year price target of $45.67, indicating a potential 44.68% downside.

Summary of Peers Analysis

Within the peer analysis summary, vital metrics for Acushnet Hldgs, Brunswick and YETI Holdings are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Polaris ranks at the bottom for Revenue Growth and Gross Profit, while it ranks in the middle for Return on Equity.

All You Need to Know About Polaris

Polaris designs and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility purposes, snowmobiles, and on-road vehicles, including motorcycles, along with the related replacement parts, garments, and accessories. The firm entered the marine market after acquiring Boat Holdings in 2018, offering exposure to another segment of the outdoor lifestyle market. Polaris products retailed through more than 2,500 dealers in North America and through 1,500 international dealers as well as more than 25 subsidiaries and 90 distributors in more than 100 countries outside North America.

Polaris: A Financial Overview

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Polaris's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -11.52%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Polaris's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.5% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Polaris's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.06%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Polaris's ROA stands out, surpassing industry averages. With an impressive ROA of 1.22%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Polaris's debt-to-equity ratio stands notably higher than the industry average, reaching 1.71. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Polaris visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.