Polaris (PII) Q1 Earnings: What To Expect

Jabin Bastian /
2024/04/22 3:01 am EDT

Off-Road and powersports vehicle corporation Polaris (NYSE:PII) will be announcing earnings results tomorrow before the bell. Here's what to look for.

Last quarter Polaris reported revenues of $2.31 billion, down 4.4% year on year, beating analyst revenue expectations by 3.2%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Is Polaris buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Polaris's revenue to decline 20.5% year on year to $1.75 billion, a deceleration on the 22.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

Polaris Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Polaris's peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Nike delivered top-line growth of 0.3% year on year, beating analyst estimates by 1.1% and Carnival reported revenues up 22% year on year, inline with estimates. Nike traded down 7% on the results, and Carnival was down 4.1%.

Read our full analysis of Nike's results here and Carnival's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share price declining 6.4% over the last month. Polaris is down 7.7% during the same time, and is heading into the earnings with analyst price target of $103.4, compared to share price of $87.4.

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