Earnings DisappointmentPolaris missed EPS expectations ($1.98 vs. $2.59), largely due to weak margins associated with heavier promotions, higher finance interest, and elevated warranty expense.
Guidance DowngradePII is initiating 2024 adjusted EPS guidance down 10-15% or EPS in the range of $7.75-$8.25, far short of the $8.78 consensus figure and our previous estimate of $9.44.
Inventory ConcernsInventory levels are 50% above targeted levels, creating an excess that needs to be addressed with increased promotional efforts.