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10-10-2006, 06:40 PM
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Motley Fool
Foolish Forecast: Polaris Launches
Tuesday October 10, 3:18 pm ET
By Rich Smith
In three of the last four quarters, ATV, motorcycle, and snowmobile maker Polaris (NYSE: PII - News) has successfully nailed the earnings targets set for it by analysts. The one time it missed, it did so by just a penny. On Thursday, Polaris aims to continue this streak of (suspiciously) remarkable consistency, as it reports its Q3 2006 numbers.
What analysts say:
Buy, sell, or waffle? Eleven analysts follow Polaris. Four of them think the stock's a buy; seven argue it's a hold.
Revenues. On average, they're looking for a 5.5% decline in sales to $513.2 million.
Earnings. With profits falling pretty much in tandem, to $1.06 per share.
What management says:
When I last looked at Polaris, I spent some time discussing the reasons for its tie-up with motorcycle maker KTM, in which the firm had recently acquired a 25% stake and was considering acquiring a controlling stake. In July, though, Polaris announced that this is not going to happen. In a joint press release issued with KTM and its majority owner, Cross Industries, Polaris advised that because Cross wishes "to remain in control of KTM and for KTM to remain an independent company," it is not interested in selling its stake to Polaris.
This has to be taken as a negative for the stock, because, as mentioned back in April, "Motorcycles are one of Polaris' best business opportunities." When the firm reported its Q2 earnings in July, for example, it admitted that both ATV and snowmobile sales had declined in the quarter -- even as Victory-brand motorcycle sales rocketed 26%.
What management does:
That's a pity, because Polaris could really use a catalyst for growth at this point. For the past year, its gross, operating, and net margins have been on a long, slow slide. Nothing's cratered, granted, but the trend continues downward as lower sales volumes make it hard to maintain the manufacturing efficiencies that yield strong gross margins.
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/fool/061010/116050793814.html?.v=1)
Motley Fool
Foolish Forecast: Polaris Launches
Tuesday October 10, 3:18 pm ET
By Rich Smith
In three of the last four quarters, ATV, motorcycle, and snowmobile maker Polaris (NYSE: PII - News) has successfully nailed the earnings targets set for it by analysts. The one time it missed, it did so by just a penny. On Thursday, Polaris aims to continue this streak of (suspiciously) remarkable consistency, as it reports its Q3 2006 numbers.
What analysts say:
Buy, sell, or waffle? Eleven analysts follow Polaris. Four of them think the stock's a buy; seven argue it's a hold.
Revenues. On average, they're looking for a 5.5% decline in sales to $513.2 million.
Earnings. With profits falling pretty much in tandem, to $1.06 per share.
What management says:
When I last looked at Polaris, I spent some time discussing the reasons for its tie-up with motorcycle maker KTM, in which the firm had recently acquired a 25% stake and was considering acquiring a controlling stake. In July, though, Polaris announced that this is not going to happen. In a joint press release issued with KTM and its majority owner, Cross Industries, Polaris advised that because Cross wishes "to remain in control of KTM and for KTM to remain an independent company," it is not interested in selling its stake to Polaris.
This has to be taken as a negative for the stock, because, as mentioned back in April, "Motorcycles are one of Polaris' best business opportunities." When the firm reported its Q2 earnings in July, for example, it admitted that both ATV and snowmobile sales had declined in the quarter -- even as Victory-brand motorcycle sales rocketed 26%.
What management does:
That's a pity, because Polaris could really use a catalyst for growth at this point. For the past year, its gross, operating, and net margins have been on a long, slow slide. Nothing's cratered, granted, but the trend continues downward as lower sales volumes make it hard to maintain the manufacturing efficiencies that yield strong gross margins.
complete article here... (http://us.rd.yahoo.com/finance/news/rss/story/*http://biz.yahoo.com/fool/061010/116050793814.html?.v=1)