Polaris tumbles after slashing FY forecasts, Q2 results miss
Updates
** Polaris shares PII.N drop as much as 10.4% to $73.63after powersports vehicle-maker cuts FY forecast, misses Q2 results
** PII sees FY24 adj. EPS to be down between 56%-62% compared with FY23 vs. prior outlook of down between 10%-15%
** Forecasts FY24 sales to be down 17%-20% compared with FY23 vs. previous outlook of down 5%-7%
** CEO Michael Speetzen blames persistent inflation, elevated interest rates for hampering demand for big ticket discretionary items
** "Dealers are conservatively managing their inventory due to higher flooring costs, driven by higher interest rates and are reducing orders accordingly" - Speetzen
** Says co continues to see challenging environment across the industry during Q3 as dealers work through current inventory
** Speetzen expects industry challenges to remain for the rest of the year
** Stock down 7% in mid-day trading, set for its worst day since May 2022
** PII also misses Street estimates on Q2 rev and profit - LSEG data
** Five of 17 brokerages rate the stock "buy" or higher, 11 "hold" and one "sell"; their median PT is $95 - LSEG data
** Up to last close, stock had fallen ~13% YTD
Reporting by Johann M Cherian and Savyata Mishra in Bengaluru
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