North American retail sales of Polaris’ Indian motorcycles increased more than 40% in the second quarter, leading the overall company to better-than-expected second-quarter results.
According to Polaris, Indian motorcycles outpaced other manufacturers and gained market share. North American retail sales for the industry were up low-single digits.
Polaris CEO Mike Speetzen said he was pleased with the results for the first half of the year. The company is set up for success in the remainder of the year, he said, thanks to new product introductions and strength in the the off-road utility markets.
Overall, the Medina-based maker of ATVs, snowmobiles and other outdoor vehicles made $134.3 million, or $2.32 a share, in the second quarter.
In the second quarter a year ago, Polaris lost $4.6 million, or $0.08 a share, mainly as a result of $142.2 million in impairment charges.
Sales of $2.2 billion were up 7% and exceeded analyst expectations by 3.3%. Adjusted earnings of $2.32 a share beat consensus expectations of $2.21 a share.
While the motorcycle and off-road segments improved during the quarter, the boat division “saw more challenges,” Speetzen told analysts on the company’s earnings call.
Marine segment sales decreased 18%, while the on-road segment saw an increase of 21% and off-road 9%.
Speetzen told analysts on the earnings call that the overall marine industry has been down. The key selling season got off to a slow start because of a late winter, affecting sales of Polaris’ Bennington and Godfrey pontoon boats. The company expects the rest of the season to remain soft.
Polaris holds a capital markets meeting next week in which it will talk more about its long-term strategy and has hinted at a new product introduction that should build on the recent release of a completely redesigned RZR XP lineup and the introduction of the Polaris Xpedition, a new side-by-side vehicle designed for people who want to get deeper into the outdoors and bring their adventure gear with them. The Xpedition has started to appear on dealer sales floors this summer.
Polaris increased its revenue guidance, saying 2023 sales will now be up 3% to 6%, or $8.8 billion to $9.1 billion. It has narrowed the earnings outlook and now says adjusted EPS will be up 2% to 3% or $10.20 to $10.75 a share for the year.
Shares of Polaris closed Tuesday at $132.81, down 1.2%. Polaris is trading near the top of its 52-week range of $91.86 to $136.55 a share.