Polaris Inc (NYSE:PII) reported second-quarter FY23 sales growth of 7% year-on-year to $2.22 billion, beating the analyst consensus of $2.14 billion.
The revenue increase was driven by favorable ship volumes, product mix and net pricing partially offset by higher finance interest.
Sales from Off-Road segment rose 9%, On Road segment jumped 21%, and Marine slumped 18%.
Adjusted EPS of $2.42 beat the analyst consensus of $2.21.
Gross profit for the quarter increased 6.5% Y/Y to $505 million, and the margin contracted by 22 basis points to 22.8%.
The company held $340.4 million in cash and equivalents as of June 30, 2023. The company’s operating cash flow for the six months totaled $347.9 million.
Adjusted EBITDA margin for the quarter contracted 40 basis points to 12%.
Outlook: Polaris raised its FY23 sales outlook to +3% – +6% (flat – +5% prior). It revised adjusted EPS guidance to -2% – +3% (-3% – +3% prior).
Price Action: PII shares closed higher by 0.11% at $134.53 on Monday.
