Why Automotive Manufacturer Polaris Shares Are Falling After Q4 Earnings Today
Portfolio Pulse from Nabaparna Bhattacharya
Polaris Inc. (NYSE:PII) reported Q4 FY23 sales of $2.289 billion, slightly above estimates but with a 5% year-on-year decline. Adjusted EPS of $1.98 missed estimates of $2.57. The company experienced lower volume, higher promotional spending, and higher finance interest, leading to a 287 basis point decrease in adjusted gross profit margin. Operating expenses increased, and the company anticipates a 5%-7% sales decline and a 10%-15% drop in adjusted EPS for 2024. PII shares fell by 3.14% after the earnings release.
January 30, 2024 | 3:54 pm
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NEGATIVE IMPACT
Polaris Inc. reported lower Q4 sales and missed EPS estimates, with increased promotional spending and finance interest impacting margins. The company's 2024 outlook indicates further sales and earnings declines.
The negative earnings report and the pessimistic outlook for 2024 suggest a bearish sentiment for Polaris in the short term. The reported decline in sales and earnings, along with the stock price already reacting negatively, indicate a likely continuation of the downward trend in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100