Off-Road and powersports vehicle corporation Polaris (NYSE:PII) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Polaris missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $1.75 billion, down 23% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Is Polaris a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Polaris’s revenue to decline 27.2% year on year to $1.68 billion, a further deceleration from the 4.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.90 per share.
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 twice over the last two years.
Looking at Polaris’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Nike’s revenues decreased 7.7% year on year, beating analysts’ expectations by 2%, and American Airlines reported revenues up 4.6%, topping estimates by 1.8%. Nike’s stock price was unchanged after the results, while American Airlines was down 9.2%.
Read our full analysis of Nike’s results here and American Airlines’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 3.8% on average over the last month. Polaris is down 5.5% during the same time and is heading into earnings with an average analyst price target of $70.71 (compared to the current share price of $53.27).
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