Polaris Industries Inc. said its third-quarter profit soared 20 percent, beating analysts' forecasts, and it raised its outlook for the rest of the year.
The Medina maker of all-terrain vehicles and snowmobiles said profit from ongoing operations was $140.8 million, or $2.06 a share. Analysts had forecast a profit of $2.02 a share.
Revenue rose 18 percent to $1.3 billion, driven mainly by a 28 percent jump in parts and accessories business. Sales of ATVs and other off-road vehicles, its biggest business, rose 17 percent. The company's motorcycle business, which is relatively small, jumped 28 percent as it rounded out its line during the period.
Even so, the company's shares fell 3.3 percent in regular trading, then rose about 2.6 percent in extended hours trading.
As it did after the first and second quarters, Polaris again raised its full-year outlook. Executives said they now expect 2014 profit to be in a range of $6.55 to $6.65 per share, up from its previous guidance of $6.48 to $6.58 per share.
Like other U.S. exporters, Polaris said the strengthening U.S. dollar continues to pose a challenge to its financial results. During the third quarter, the U.S. dollar rose an average of 7.74 percent against the currencies of its major trading partners.
In a measure of Polaris' operating efficiency and pricing power, the company reported it was still able to post double-digit percentage sales growth in every region outside Europe.
"They just keep finding new ways to grow," said Morningstar analyst Jaime Katz.
In addition to challenging Harley-Davidson in the heavyweight motorcycle market with its Indian brand products, Polaris this year introduced a smaller motorcycle called the Scout and a three-wheel bike called the Slingshot. Executives said customer preorders for the Slingshot were unusually strong.
Reuters contributed to this report.
Evan Ramstad • 612-673-4241
