Polaris (NYSE:PII) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Polaris shares jumped after the company reported quarterly EPS of $1.08, well above the $0.59 analyst consensus, while revenue reached $2.04 billion versus expectations of $1.90 billion. Revenue increased 10.9% year over year.
• The company declared a quarterly dividend of $0.68 per share, equivalent to $2.72 annually and a 4.6% yield.
• Wall Street remains cautious, with a consensus “Hold” rating and an average price target of $63.00; institutional investors own 88.06% of Polaris shares.

Polaris Inc. (NYSE:PII - Get Free Report) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $55.15, but opened at $59.59. Polaris shares last traded at $59.0540, with a volume of 204,035 shares changing hands.

The company reported $1.08 earnings per share for the quarter, topping analysts' consensus estimates of $0.59 by $0.49. The company had revenue of $2.04 billion during the quarter, compared to analyst estimates of $1.90 billion. Polaris had a negative net margin of 3.50% and a positive return on equity of 16.77%. The business's revenue for the quarter was up 10.9% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.28) EPS.

Polaris Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a dividend of $0.68 per share. The ex-dividend date was Tuesday, September 1st. This represents a $2.72 annualized dividend and a dividend yield of 4.6%. Polaris's dividend payout ratio (DPR) is -58.75%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on PII. KeyCorp restated a "sector weight" rating on shares of Polaris in a report on Wednesday, July 29th. Robert W. Baird lowered their target price on Polaris from $72.00 to $65.00 and set a "neutral" rating on the stock in a report on Wednesday, October 7th. Roth Capital reiterated a "neutral" rating on shares of Polaris in a research report on Wednesday, July 29th. Weiss Ratings raised shares of Polaris from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, July 29th. Finally, Royal Bank Of Canada raised their price objective on shares of Polaris from $65.00 to $75.00 and gave the company a "sector perform" rating in a research report on Wednesday, July 29th. One analyst has rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $63.00.

Institutional Investors Weigh In On Polaris

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Alyeska Investment Group L.P. acquired a new stake in shares of Polaris during the second quarter worth $7,576,000. Allianz Asset Management GmbH boosted its position in shares of Polaris by 272.7% in the 2nd quarter. Allianz Asset Management GmbH now owns 386,300 shares of the company's stock valued at $26,438,000 after purchasing an additional 282,651 shares during the period. Legal & General Group Plc acquired a new position in shares of Polaris in the 2nd quarter valued at $5,222,000. Bank of America Corp DE acquired a new position in shares of Polaris in the 2nd quarter valued at $17,374,000. Finally, Renaissance Technologies LLC increased its stake in Polaris by 87.1% in the 1st quarter. Renaissance Technologies LLC now owns 225,800 shares of the company's stock worth $12,306,000 after purchasing an additional 105,100 shares in the last quarter. Institutional investors and hedge funds own 88.06% of the company's stock.

Polaris Price Performance

The stock has a 50 day moving average of $57.15 and a two-hundred day moving average of $62.85. The company has a debt-to-equity ratio of 2.28, a quick ratio of 0.47 and a current ratio of 1.20. The stock has a market cap of $3.34 billion, a PE ratio of -12.66 and a beta of 1.32.

About Polaris

Polaris Inc is a manufacturer of powersports products headquartered in Medina, Minnesota. Founded in 1954, the company began as a snowmobile manufacturer and has expanded into a diversified portfolio of off-road vehicles, motorcycles, snowmobiles and boats.

Its off-road vehicle lineup includes utility and recreational models sold under brands such as RANGER, RZR, Sportsman and GENERAL. Polaris also manufactures snowmobiles under the Polaris brand and motorcycles through Indian Motorcycle and Slingshot.

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