Polaris 2Q profit tops Street, selling prices rise
MINNEAPOLIS — Polaris Industries' second-quarter net income rose 15 percent, in part because of higher selling prices and ongoing efforts to lower product costs.
The snowmobile and ATV maker also raised its full-year earnings forecast on Tuesday for the second consecutive quarter.
Its shares jumped $2.52, or 2.4 percent, to $106 in premarket trading. If that carries over into regular trading, it would beat its high for the past year of $103.71.
For the period ended June 30, Polaris Industries Inc. earned $80 million, or $1.13 per share. That compares with $69.8 million, or 98 cents per share, a year ago.
The performance topped the $1.11 per share that analysts surveyed by FactSet expected.
Revenue climbed 12 percent to $844.8 million from $755.4 million as sales of off-road vehicles and small vehicles improved. Polaris also reported a rise in sales of parts, clothing and accessories.
Wall Street expected revenue of $838.6 million.
Sales of small vehicles, which include the GEM and Goupil electric vehicles and Aixam Mega, jumped mostly because of the acquisition of Aixam Mega, a French company that makes small cars.
North American sales increased 11 percent, while sales overseas climbed 22 percent.
The Minneapolis company now anticipates full-year earnings of $5.20 to $5.30 per share, up from $5.05 to $5.20 per share. Polaris had also lifted the outlook when it reported its first-quarter results in April. Analysts predict earnings of $5.24 per share for the year.
The company narrowed its revenue guidance. It now expects 2013 revenue growth of 13 percent to 15 percent. Previously, it predicted a 12 percent to 15 percent increase. Based on 2012's revenue of $3.21 billion, this implies $3.63 billion to $3.69 billion. Wall Street is looking for full-year revenue of $3.67 billion.