Polaris Industries (NYSE: PII) reported Q1 EPS of $1.06, $0.19 better than the analyst estimate of $0.87. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.21 billion.

• Reported and adjusted sales for the first quarter of 2018 increased 12% to $1,297 million
• First quarter 2018 reported net income was $0.85 per diluted share; adjusted net income for the same period was $1.06 per diluted share, up 41% over the prior year
• North American retail sales increased 3% for the quarter; ORV N.A. retail sales were up mid-single digits % with side-by-side vehicles up high-single digits %. Gained market share in RANGER, RZR and Sportsman ORV brands during the quarter along with share gains in both Indian and Slingshot motorcycle brands
• Total first quarter 2018 dealer inventory was up 6% year-over-year; ORV dealer inventory was flat
• Polaris increased its full year 2018 sales guidance to up 4% to 6% and narrowed its full year earnings expectations by raising the lower end of its earnings per share range and now expects adjusted net income to be in the range of $6.05 to $6.20 per diluted share which includes the absorption of an additional approximately $15 million of commodity, freight and tariff costs anticipated in 2018

2018 Business Outlook

Given the 2018 first quarter results, the Company is raising its full year sales guidance and now expects sales to be in the range of four percent to six percent over 2017 adjusted sales of $5,428 million and narrowing its earnings guidance range for the full year 2018 and now expects adjusted net income to be in the range of $6.05 to $6.20 per diluted share, compared with adjusted net income of $4.85 per diluted share for 2017. The revised guidance takes into account additional costs related to commodity price increases, higher freight costs, and the estimated impact of additional tariffs totaling approximately $15 million, pre-tax.

GUIDANCE:

Polaris Industries sees FY2018 EPS of $6.05-$6.20, versus the consensus of $6.16.

For earnings history and earnings-related data on Polaris Industries (PII) click here.