PII - Polaris: Off The Road Here

2024-06-20 11:02:12 ET

Summary

• Polaris shares hit the lowest levels in over a decade due to a reversal of post-pandemic demand trends.
• The company's diversification efforts resulted in diworsification, with off-road vehicles still making up the majority of sales.
• A weak first quarter in 2024 raises concerns about full-year guidance, as any reasonable earnings miss still yields a non-demanding multiple.

In the summer of 2022 I believed that shares of Polaris ( PII ) were hitting the short-term brakes. The company suffered from inflationary pressures and equipment shortages, while demand concerns arose as well, creating risks to the guidance....

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