Polaris (NYSE:PII), the off-road and powersports vehicle corporation, released its first-quarter fiscal 2024 results, which fell short of analysts’ expectations. Revenue declined significantly by 20.9% year over year to $1.74 billion, missing estimates by 0.6%. Similarly, earnings per share (EPS) dropped 29.5% to $0.07, significantly below the anticipated $0.10.
Polaris also reiterated its full-year guidance from the previous quarter. The company’s gross margin under GAAP stood at 19%, down from 22.1% in the same period last year. Free cash flow, a key indicator of financial health, was negative $177.5 million, compared to a positive $448.9 million in the previous quarter.
The company’s weak performance in the first quarter is attributed to several factors, including a decline in powersports sales due to softer demand and supply chain disruptions. Polaris also faced higher input costs and increased operating expenses.
Despite the disappointing results, Polaris noted that it gained market share in off-road vehicles (ORV), motorcycles, and marine products. The company also highlighted the recent launch of new models in its popular full-size Polaris RANGER and Indian Scout lineups, reflecting its focus on rider-driven innovation.
Polaris’s shares fell 2.3% in response to the earnings report and are currently trading at $86.21 per share. Investors will be closely monitoring the company’s progress in the coming quarters to assess its ability to navigate the current challenges and return to growth.
