Harley-Davidson Gains On Solid Q3 Earnings

  • Harley-Davidson Inc HOG reported third-quarter FY22 consolidated revenue growth of 21% year-on-year to $1.65 billion. 
  • Revenue from the Motorcycles and Related Products segment (HDMC) grew 24% to $1.44 billion, beating the consensus of $1.37 billion.
  • The increase in HDMC revenue was driven by a strong recovery in global motorcycle shipments after being adversely impacted by an unexpected production suspension in Q2.
  • Harley-Davidson's EPS of $1.78 beat the consensus of $1.41.
  • Revenue from Motorcycles climbed 28%, Parts & Accessories dropped 2%, Apparel climbed 41%, and Licensing rose 26%.
  • The gross profit margin in HDMC expanded 740 basis points Y/Y at 34.1%.
  • Consolidated operating income rose 66% Y/Y to $338.7 million. Operating income from HDMC jumped 164% Y/Y to $258 million.
  • Harley-Davidson generated $575 million in cash from operating activities year-to-date. It held cash and equivalents of $2.04 billion as of September 25, 2022.
  • Outlook: Harley-Davidson reaffirmed its guidance and expects FY22 HDMC revenue growth of 5% - 10%, HDMC operating income margin of 11% - 12%, HDFS operating income to decline by 20% - 25%.
  • It lowered the capital investments outlook to $170 million - $190 million from 190 million - $220 million.
  • Price Action: HOG shares are trading higher by 13.43% at $42.10 on the last check Wednesday.
  • Photo Via Wikimedia Commons
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