You know what’s ailing the economy, right? Consumers are sick, have little extra money for large discretionary purchases, and credit is tight. So what in the world is going on with ATV-maker Polaris? Somehow in United States of Polaris-ville the economic trends affecting America don’t seem to apply. Just take a look at today’s earnings:
- Earnings surpassed estimates, $1.13 vs. $1.07 est.
- Sales grew 7%, again handily beating estimates: $580.3 million vs. $563 million
- For the full year, the company sees earnings of $3.47-$3.50, compares to estimates $3.45
But here’s the real shocker, and we had to read it five times before we believed it:
- “The availability of retail credit financing to Polaris consumers improved during third quarter 2008 as compared to third quarter 2007 levels with 41 per cent of Polaris consumers in the United States financing purchases through the Company’s retail financing relationships with HSBC and GE and over 50 per cent of consumer retail credit loan applications being approved by either HSBC or GE”
So Americans can’t get loans for cars, businesses, homes, or anything like that, we’re told. And yet, courtesy of HSBC and GE, financing has become more available for buyers of ATVs? The company acknowledges that it won’t be immune to the recession, but even in the coming quarter, it sees trends holding up.
What gives here? Any ideas? So far the only thing we’ve come up with is that it has something to do with Todd Palin.