Polaris (PII) Q3 Earnings Report Preview: What To Look For

Off-Road and powersports vehicle corporation Polaris (NYSE:PII) will be reporting earnings tomorrow before market open. Here’s what investors should know.

Polaris missed analysts’ revenue expectations by 9.8% last quarter, reporting revenues of $1.96 billion, down 12.3% year on year. It was a disappointing quarter for the company, with a miss of analysts’ earnings estimates.

Is Polaris a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Polaris’s revenue to decline 21.9% year on year to $1.77 billion, a further deceleration from the 3.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Polaris has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.3% on average.

Looking at Polaris’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike traded down 6.8% following the results while Scholastic was up 6%.

Read our full analysis of Nike’s results here and Scholastic’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.7% on average over the last month. Polaris’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $88.13 (compared to the current share price of $82.55).

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