Polaris Industries, Inc.
) posted record high earnings from continuing operations of $1.64
per share in the third quarter of 2013, reflecting a 23% rise
from $1.33 in the year-ago quarter. Earnings exceeded the Zacks
Consensus Estimate by 3 cents.
Net income, excluding discontinued operations, increased 24%
to $116.9 million from $94.3 million a year ago. Including income
from discontinued operations, net income rose 19.9% to $113.1
million or $1.59 per share. During the quarter, Polaris recorded
a post-tax loss from discontinued operations of $3.8 million or 5
cents per share due to an unfavorable lawsuit verdict related to
its discontinued marine products business.
Total revenue for the third quarter of 2013 rose 25% to a
record high of $1.1 billion. Revenues surpassed the Zacks
Consensus Estimate of $1.05 billion.
The record breaking earnings and revenues were driven by
strong demand for Polaris' products.
Of the total revenue, revenues from off-road vehicles
increased 23% to $702 million. Meanwhile, revenues from
snowmobiles went up 25% to $143.6 million and revenues from small
vehicles increased 188% to $31.7 million.
Revenues from parts, garments and accessories rose 37% to $176
million. However, revenues from motorcycles declined 6% to $49.4
Operating expenses totaled $165.2 million, up 31% from $126.4
million in the third quarter of 2012. The increase was due to
higher sales and marketing costs, increased general and
administrative expenses and elevated accrued incentive
Polaris had cash and cash equivalents of $387.8 million as of
Sep 30, 2013, down from $412.9 million as of Sep 30, 2012. Total
debt decreased to $107.2 million from $107.3 million as of Sep
30, 2012. Debt-to-total capital ratio declined to 10% as of Sep
30, 2013 from 14% as of Sep 30, 2012.
In the first nine months of 2013, Polaris' operating cash flow
improved 50% to $381.8 million from $254.5 million in the
Polaris raised its full year 2013 guidance for earnings from
continuing operations to $5.30-$5.37 per share, up 20%-22% over
2012. Meanwhile, the company expects 15%-16% revenue growth in
Currently, Polaris carries a Zacks Rank #2 (Buy). Other
stocks worth considering in the industry where Polaris operates
Smith & Wesson Holding Corporation
Black Diamond, Inc.
). Smith & Wesson carries a Zacks Rank #1 (Strong Buy), while
Black Diamond and Brunswick are Zacks Rank #2 (Buy) stocks.
BRUNSWICK CORP (BC): Free Stock Analysis
BLACK DIAMOND (BDE): Free Stock Analysis
POLARIS INDUS (PII): Free Stock Analysis
SMITH & WESSON (SWHC): Free Stock Analysis
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