10-26-2017, 11:17 PM
This is what we wrote in December 2016:
Polaris performance was stellar until they ran into some considerable headwinds. While these headwinds still persist during 2017, they should gradually ease. When that happens, the ongoing improvement programs are likely to start showing up and profits is likely to recover substantially.
Headwinds For Polaris Should Gradually Subside - Polaris Industries Inc. (NYSE
II) | Seeking Alpha
That is playing out..
Polaris Industries (PII) had its Relative Strength (RS) Rating upgraded from 84 to 94 Wednesday. Autoplay: On | Off This exclusive rating from Investor's Business Daily identifies price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database. Over 100 years of market history shows that the best-performing stocks typically have an 80 or higher RS Rating at the beginning of a new price run.
More specifically on the former, Polaris' adjusted quarterly revenue climbed 25% year over year to $1.48 billion, including a 13% increase in Polaris North American unit retail sales. Roughly half of Polaris' overall revenue increase stemmed from organic growth. On the bottom line, adjusted net income nearly tripled on a year-over-year basis to $93.5 million, or $1.46 per diluted share. Both figures were well ahead of investors' expectations for adjusted earnings of $1.23 per share on revenue of $1.4 billion.
Why Polaris Industries Inc. Stock Popped Today
Polaris (PII +10.8%) pops after the company lifted its 2017 revenue forecast to 18% to 19% growth vs. +12% to 14% prior forecast and +15% consensus. Shares hit a new 52-week high of $118.38 before peeling back a bit. The powersports vehicle manufacturer expects full-year EPS of $4.75 to $4.85 vs. $4.35 to $4.50 prior view and $4.50 consensus. 'Strong retail growth in both North America and nearly all of our International markets drove record sales and highlighted our ongoing product innovation, improving product quality and sharpened execution," notes Polaris CEO Scott Wine. The strong Polaris numbers may be helping to lift sentiment on Thor Industries (THO +1.1%) and Winnebago (WGO +2.1%).
Robust guidance takes Polaris to 52-week high - Polaris Industries Inc. (NYSEII) | Seeking Alpha