RZR XP 1000’s like the new 2015 RZR XP 1000 EPS Desert Edition helped drive sales.

Polaris reported an 18% year over year increase in revenue for third quarter 2014 driven by increases in their motorcycle, PG&A and Off-road Vehicle (ORV) divisions. ORV which includes side-by-sides and ATVs recorded a 17% increase. With another strong quarter, management raised their guidance for full-year results in 2014. Some highlights of the earnings call as it relates to Small, Task-Oriented Vehicles include:

• ORV revenue up 14% year-to-date
• Market share gains in the quarter for both side-by-sides and ATVs in North America adds to their #1 positions
• ORV revenue was driven by side-by-sides that outpaced the industry believed to be growing at 10%
• The 2 and 4 seat RZR XP 1000’s as well as the RZR 900 Trail are selling well
• In the commercial UTV segment Brutus retail sales continue to grow sequentially and year-over-year for both Polaris and Bobcat
• Commercial national accounts and fleet sales were strong
• The Gravely Atlas UTV was launched in the quarter
• Defense related ORV revenue was flat for the quarter but up 25% year-to-date with international sales of the MRZR contributing
• The Small Vehicle division reported an 8% revenue increase in the quarter due to GEM and Aixam
• Year-to-date Small Vehicle revenue is up 52%
• GEM reported retail sales increase of 20% on action in B2B and GSA sales
• While Aixam grew despite a weakening European market, Goupil revenue decreased with softness in the French economy, their major market
• The Opole, Poland factory opened and will produce ORV and other products for the European and Middle East markets
• International sales were helped by strong ORV sales in India and Australia
• Currency issues provided some headwind in foreign markets

Learn more:  Seekingalpha.com (earnings call transcript)

Comments:  Despite some macro economic issues the Polaris juggernaut keeps on rolling as they continue to add market share despite increased competition in the side-by-side and ATV markets. Their large market share and subsequent production volume gives them an advantage in driving down vehicle costs and provides funding for their robust R&D budget and new model pipeline. The large number of models they market allows them to target specific sub-segments with specific vehicle capabilities and characteristics. In turn this makes it more difficult for competitors to match up on a vehicle to vehicle basis in each sub-segment.