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Why Shares of Polaris Industries Inc. Popped in October

What happened 

Shares of ATV and snowmobile maker Polaris Industries Inc. (NYSE: PII) jumped 13.2% in October, according to data provided by S&P Global Market Intelligence, after reporting a surprisingly strong third quarter. 

So what 

Polaris' sales were up 25% in the quarter to a record $1.48 billion and net income nearly tripled to $81.9 million, or $1.28 per share. Unit retail sales growth was up 13%, indicating strong pull through of the company's products, and about half of the 25% revenue growth was organic in nature. 

Image source: Getty Images.

Indian Motorcycles continues to gain market share, but it was an improvement in the off-road segment that's most notable to investors. Recalls have hampered both costs and sales in the last couple of years and these are the first signs those dark days are behind the company. The other driver of sales growth was the acquisition of Transamerican Auto Parts, which was completed in the fourth quarter of 2016. 

Now what 

Polaris hasn't put recalls completely in its rear view, but the worst days appear to be over. Now, the company will need to show it can continue to take market share and improve the bottom line. I think Polaris has brighter days ahead and if the economy remains strong demand for off-road vehicles and motorcycles should be robust as well. 

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Travis Hoium has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Polaris Industries. The Motley Fool has a disclosure policy.