Shares of Polaris Inc. (PII) plummeted 5.32% in Tuesday's trading session, as investors reacted to the company's mixed third-quarter results and lowered full-year guidance. Despite beating analyst estimates, the recreational vehicle manufacturer's financial performance showed signs of strain, particularly due to mounting pressures from tariffs and a challenging economic environment.
Polaris reported a net loss of $15.8 million for the third quarter, a stark contrast to the $27.7 million profit recorded in the same period last year. While adjusted earnings per share of $0.41 significantly surpassed the Wall Street consensus of $0.16, it still represented a 43.8% decline from the $0.73 per share earned a year ago. Revenue for the quarter rose 7% to $1.84 billion, exceeding analyst expectations of $1.75 billion.
The company's outlook further dampened investor sentiment. Polaris slashed its full-year 2025 adjusted EPS guidance to a loss of $0.05 per share, down from a previous forecast of $1.14 profit. This revision reflects the ongoing challenges faced by the company, including an estimated $90 million impact from tariffs in fiscal 2025. CEO Mike Speetzen acknowledged the difficulties but expressed confidence in the company's strategy, stating, "Our operational discipline, dealer inventory alignment, and innovation pipeline have us positioned to deliver for dealers and customers, drive profitable growth and create greater value for our shareholders."
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