Based on dealer feedback, RBC Capital Markets analyst Edward Aaron expects Polaris will report low-double-digit retail sales growth for its off-road-vehicles for the fourth quarter of its 2012 fiscal year.
Aaron forecasts that side-by-side sales will be up in the mid- to high-teens, and ATVs will be up in mid-single digits. Snowmobile sales are expected to be down modestly.
“Demand for the new Ranger XP 900 appears especially strong (a shortage of cab accessories leads us to believe that initial sales have exceeded expectations), and demand for this product should build further over the next couple of months as we move into the peak farming/ranching season. A weaker snowmobile season is a partial offset to the strong ORV demand,” Aaron wrote.
He also reported that Polaris valuation is historically high.
“PII shares are sitting at all-time highs, and valuation (17.5x forward P/E) is approaching the high end of the company’s post-recession valuation range,” he wrote.
Polaris will report its fourth quarter results Tuesday morning.