Polaris Industries (NYSE: PII) reported Q4 EPS of $1.83, $0.01 better than the analyst estimate of $1.82. Revenue for the quarter came in at $1.63 billion versus the consensus estimate of $1.64 billion.

• Reported and adjusted sales for the fourth quarter of 2018 increased 14% to $1,627 million
• Fourth quarter reported net income was $1.47 per diluted share, up 200% over the prior year; adjusted net income for the same period was $1.83 per diluted share, up 19% over the prior year
• Full year 2018 reported net income was $5.24 per diluted share up 95%; adjusted net income for the same period was $6.56 per diluted share, up 29%, which was near the high-end of previously issued guidance. Reported and adjusted sales for the full year of 2018 increased 12% to $6,079 million and $6,083 million, respectively
• North American retail sales increased 6% for the quarter compared to last year; ORV N.A. retail sales were up low single-digits driven by side-by-side vehicles sales
• Dealer inventory was up 1% year-over-year for the fourth quarter 2018, in line with expectations
• Polaris announced full year 2019 adjusted sales and earnings guidance with full year adjusted sales growth in the range of 11% to 13% over the prior year and full year adjusted earnings in the range of $6.00 to $6.25 per diluted share which includes the combined negative impact from external factors including the annualized impact of current tariffs, adverse foreign exchange impact and higher interest rates of approximately $1.50 per share.

CEO Commentary

“Our strong performance during 2018 demonstrated the dedication and flexibility of our global team, as they drove improved financial and operating results for the year while adapting and executing our strategy to account for tariffs and other external pressures. Between sales growth in almost all of our segments, improved operational efficiencies, and a lower tax rate, we more than offset macro-economic and tariff headwinds, generating a 29 percent increase in earnings per share. Growth and market share gains in Off Road Vehicles, and the acquisition of Boat Holdings, further expanded our position as the global leader in Powersports, and established Polaris as a leader in the attractive, profitable and growing pontoon market. We are encouraged by our growth prospects for 2019 and beyond, but keenly aware of, and prepared for, the challenges and uncertainties presented by global trade and economic complications. We our doubling down on our commitment to be a customer-centric, highly efficient growth company, directing our investments and actions towards organic growth and productivity. Our devotion to safety and quality is never-ending, and provides the solid foundation for our future of innovation and profitable growth. We expect to demonstrate that in the year ahead with further market share gains in both ORV and motorcycles, as we continue to advance our leadership position in Powersports.”

GUIDANCE:

Polaris Industries sees FY2019 EPS of $6.00-$6.25, versus the consensus of $6.95.

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