All-terrain vehicles maker
Polaris Industries, Inc.
) has voluntarily recalled around 327 units of its 2013 Polaris
Ranger 400 recreational off-highway vehicles due to potential
crash hazard arising from a defect. The recall was conducted in
cooperation with the U.S. Consumer Product Safety Commission
ARCTIC CAT INC (ACAT): Free Stock Analysis
POLARIS INDUS (PII): Free Stock Analysis
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The CPSC, on its website, stated that the throttle in the
recalled vehicles can fail to operate properly, causing the rider
to lose control and crash. However, no incidents of injuries were
The vehicles involved in the recall were sold by Polaris dealers
nationwide from July through September 2012 for roughly $8,300.
The consumers have been advised to immediately stop using the
recalled vehicles and contact the company for a free repair.
Polaris Industries makes snowmobiles, off-road vehicles and
on-road vehicles with annual sales of $2.7 billion. The company
also offers replacement parts, accessories and recreational
apparel. It markets its products through independent dealers and
distributors under a host of brands, primarily in the U.S.,
Canada and Europe.
The company reported its third-quarter 2012 results on October
18. It posted a 40% year-over-year gain in earnings per share to
$1.33, beating the Zacks Consensus Estimate of $1.20.
Revenues jumped 21% year over year to $879.9 million. The growth
was driven by strong demand as well as market share gains for the
company's Ranger and RZR side-by-side off-road vehicles.
Manufacturing realignment and cost management initiatives also
supported the results.
Polaris Industries expects higher revenues and earnings for
full-year 2012, based on its strategic direction and
implementation strategies. The company expects earnings per share
between $4.32 and $4.37 for the year, up 35%-37% from $3.20 in
2011. Sales are expected to grow 19%-20% from 2011. The company
will report its fourth quarter results on January 29.
Polaris Industries currently retains a Zacks Rank #2 (Buy).
Arctic Cat Inc.
), which also makes recreational Vehicles, holds a Zacks Rank #4