{"id":5652,"date":"2018-02-02T20:04:24","date_gmt":"2018-02-02T20:04:24","guid":{"rendered":"https:\/\/smallvehicleresource.com\/blog\/?p=5652"},"modified":"2018-02-05T20:39:33","modified_gmt":"2018-02-05T20:39:33","slug":"polaris-q4-2017-earnings","status":"publish","type":"post","link":"https:\/\/smallvehicleresource.com\/blog\/2018\/02\/02\/polaris-q4-2017-earnings\/","title":{"rendered":"Polaris Q4 2017 Earnings"},"content":{"rendered":"<div id=\"attachment_5330\" style=\"width: 310px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-5330\" class=\"size-medium wp-image-5330\" src=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2017\/08\/Pol18_RangerXP1000EPS-300x262.jpg\" alt=\"2018 Polaris Ranger XP 1000 EPS\" width=\"300\" height=\"262\" srcset=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2017\/08\/Pol18_RangerXP1000EPS-300x262.jpg 300w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2017\/08\/Pol18_RangerXP1000EPS-343x300.jpg 343w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2017\/08\/Pol18_RangerXP1000EPS.jpg 350w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-5330\" class=\"wp-caption-text\">The 2018 Polaris Ranger XP 1000 EPS helped drive sales for the quarter and the year.<\/p><\/div>\n<p>Polaris Industries reported quarterly revenue of $1.431 billion and annual revenue of $5.429 billion, representing increases of 18% and 20% respectively compared to last year. Adjusted earnings per share for the quarter increased 25% driven by higher volume, lower promotional spend and operating expense leverage. For the year a 39% increase in earnings per share was driven by a combination of increased volume, an improvement in gross margins and a lower tax rate.<\/p>\n<p>The following are highlights of the earnings call related to small, task-oriented vehicles.<\/p>\n<ul>\n<li>ORV sales increased 14% in Q4 and 9% for the year<\/li>\n<li>Average ORV selling price was up 4% for the quarter<\/li>\n<li>ORV retail was up for the year but down for the 4th quarter as retail unit sales of Off-Road Vehicles were down just under 1%<\/li>\n<li>Ranger sales were up for the quarter with strong demand for the new Ranger XP 1000 lineup<\/li>\n<li>RZR sales declined for the quarter driven by &#8220;tapped demand and limited product availability&#8221;<\/li>\n<li>For the quarter the ramp up of Ranger and RZR production was slower than expected in part attributed to the new quality initiative. This manifested as a production issue with a four-wheel drive component on the Ranger XP 1000, which was originally not up to the company&#8217;s quality standard.<\/li>\n<li>Continued roll out RFM inventory and ordering system for side-by-sides and should be fully optimized by the second quarter<\/li>\n<li>North American industry side-by-side growth was strong in Q4 but ATVs down.<\/li>\n<li>Utility side of ORV is expected to grow but there is stiff competition on the RZR side which will not grow as much as competition increases<\/li>\n<li>Agriculture markets were down in the fourth quarter and oil markets were up slightly, but there was no &#8220;substantial shift&#8221; in buying patterns.<\/li>\n<li>In the side-by-side market decreased pricing is offset somewhat by decreased promotional costs and there is some commodity pricing pressures<\/li>\n<li>Australia was a strong market as buyers switch from ATVs to UTVs<\/li>\n<li>Global Adjacent Markets sales increased 19% in the fourth quarter, driven by strong growth in Aixam and Goupil, as well as continued strong sales growth in Government and Defense<\/li>\n<li>For the year Global Adjacent Markets revenue reached almost $400 million including PG&amp;A<\/li>\n<li>Average selling price for Adjacent Markets increasing 14% for the quarter<\/li>\n<li>For the full year Global Adjacent Markets sales increased 16% with all business lines growing<\/li>\n<li>In Europe there is strong demand for small, inner-city delivery vehicles including electrics and that demand is increasing in the US as well<\/li>\n<li>&#8220;More autonomous activities with both the military and Taylor-Dunn platforms than anywhere else in the company&#8221;<\/li>\n<\/ul>\n<p>Guidance for 2018<\/p>\n<ul>\n<li>Total company sales are expected to be up in the range of 3% to 5% with ORV market expected to be up<\/li>\n<li>ORV market share is expected to be stable with continued momentum from Ranger and General product lines<\/li>\n<li>ORV\/Snowmobile sales are expected to be up low to mid-single digits with Snow about flat and ORV and PG&amp;A sales up<\/li>\n<li>Global Adjacent Markets sales are expected to be up mid single-digit percent with growth expected in all businesses.<\/li>\n<li>The new long-term strategic targets for the company as a whole are 5% compounded annual growth rate for revenues and 15% for earnings<\/li>\n<li>Management will be focusing on cost leadership more while maintaining innovation<\/li>\n<\/ul>\n<p><a href=\"https:\/\/seekingalpha.com\/article\/4141472-polaris-pii-ceo-scott-wine-q4-2017-results-earnings-call-transcript?part=single\" target=\"_blank\" rel=\"nofollow noopener\">Learn more:?? Seekingalpha.com<\/a> (Earnings Call Transcript)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Polaris Industries reported quarterly revenue of $1.431 billion and annual revenue of $5.429 billion, representing increases of 18% and 20% respectively compared to last year. Adjusted earnings per share for the quarter increased 25% driven by higher volume, lower promotional &hellip; <a href=\"https:\/\/smallvehicleresource.com\/blog\/2018\/02\/02\/polaris-q4-2017-earnings\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7,8,12,14,997,23,1829,27],"tags":[388,2086,1546,2579,1047,1127],"class_list":["post-5652","post","type-post","status-publish","format-standard","hentry","category-electric-vehicles","category-gem","category-globalization","category-management","category-market-trends","category-polaris","category-sales-figures","category-side-by-side-2","category-utility-vehicles","tag-earnings-call","tag-general","tag-goupil","tag-q4-2017","tag-ranger","tag-rzr"],"_links":{"self":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/5652"}],"collection":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/comments?post=5652"}],"version-history":[{"count":9,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/5652\/revisions"}],"predecessor-version":[{"id":5666,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/5652\/revisions\/5666"}],"wp:attachment":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/media?parent=5652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/categories?post=5652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/tags?post=5652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}