Polaris Reports "Alarming" 2025 EPS Outlook As RZR & ATV Demand Slide

Polaris shares fell 6% in premarket trading after the company, known for producing ATVs, UTVs, jet skis, and snowmobiles, surprised investors with guidance for a 65% year-over-year decline in adjusted EPS for 2025, coming in far below expectations. 

Citi analyst James Hardiman told clients earlier that the downward revision was very "alarming," warning about President Trump's tariff battle with China could result in additional downward pressure for EPS for the full year. 

"While management suggested on their 3Q call that a good starting point for 2025 EPS would be flat with 2024, which was guided to $3.25, at the time, management officially initiated 2025 adjusted EPS guidance at just $1.10," Hardiman said, adding his team maintained a "Neutral" rating on PII shares. 

Polaris' Yearly Forecast (courtesy of Bloomberg):

• Sees adjusted EPS about -65% from 2024's $3.25; estimate $3.06

• Sees sales -1% to -4%

However, Polaris reported better-than-expected revenue in the fourth quarter, though sales fell 23% year-over-year to $1.76 billion. High interest rates deterred consumers from purchasing RZRs, Sportsman ATVs, and other offroad vehicles. 

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