Off-Road and powersports vehicle corporation Polaris (NYSE: PII) will be reporting earnings this Tuesday before the bell. Here’s what to look for.
Polaris beat analysts’ revenue expectations last quarter, reporting revenues of $1.94 billion, up 9% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is Polaris a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Polaris’s revenue to grow 5% year on year, a reversal from the 11.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Polaris has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Polaris’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 5.2%, and CBRE reported revenues up 18.2%, topping estimates by 2.5%. Monarch traded up 15.9% following the results while CBRE was down 3.4%.
Read our full analysis of Monarch’s results here and CBRE’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.8% on average over the last month. Polaris is up 13.3% during the same time and is heading into earnings with an average analyst price target of $65.47 (compared to the current share price of $60.04).
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