Polaris Industries (NYSE: PII) reported Q1 EPS of $2.11, $0.52 better than the analyst estimate of $1.59. Revenue for the quarter came in at $1.95 billion versus the consensus estimate of $1.86 billion.

Financial and Operational Highlights

• First quarter reported and adjusted sales increased 39% to $1,951 million
• First quarter reported net income was $2.11 per share; adjusted net income for the same period was $2.30 per share
• Gross profit margin, reported and adjusted, for the first quarter was 24.6% and 24.7%, up 378 basis and 352 basis points over the prior year, respectively. The increase was primarily due to lower promotional costs, partially offset by costs related to supplier constraints
• North American retail sales increased 70% for the quarter compared to last year driven by broad-based strength across the business
• Market share improved for all segments during the quarter; ORV, snowmobiles, motorcycles and boats
• Polaris repurchased approximately 2.5 million shares of Polaris stock during the quarter for $299.1 million

CEO Commentary

The strength of our brands and the agility and dedication of the global Polaris team were on full display yet again this quarter, building on our incredible momentum from 2020 and delivering results that exceeded our expectations. Despite pandemic-related supply chain constraints, logistical challenges, and North American weather-related disruptions, sales across our business grew double-digits as we leveraged our capabilities and scale as the industry leader in powersports to deliver for our customers and dealers. Industry-leading innovation remains core to who we are, which was evident by the introduction of over 40 new or limited edition models during the quarter, including 22 new snowmobiles and a new turbo charged engine, 15 new and limited edition ORV models and three all-new Indian Chief motorcycles celebrating 100 years of one of the most historic and influential motorcycles of all time. We also announced plans to launch an all-new full-size electric RANGER by year-end, which further positions us to be the leader in powersports electrification. We will continue to swiftly navigate the challenges that may present themselves in the coming quarters, while positioning Polaris for long-term growth and value-creation for all our stakeholders.

-- Mike Speetzen, Interim Chief Executive Officer of Polaris Inc.

GUIDANCE:

Polaris Industries sees FY2021 EPS of $9.00-$9.25, versus the consensus of $8.88. Polaris Industries sees FY2021 revenue of $8.3-8.5 billion, versus the consensus of $8.15 billion.

Given the 2021 first quarter results, and the expected continued strong retail demand, the Company is increasing its full year sales and earnings guidance and now expects adjusted net income to be in the range of $9.00 to $9.25 per diluted share, compared with adjusted net income of $7.74 per diluted share for 2020 with full year 2021 sales now in the range of $8,300 to $8,500 million, up 18 to 21 percent.

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