Core Viewpoint - Institutional Shareholder Services Inc. (ISS) has recommended that shareholders vote "FOR ALL" of Harley-Davidson's director nominees, concluding that H Partners has not made a compelling case for change and that their campaign has likely hindered the ongoing CEO search process [1][2]. Group 1: Harley-Davidson's Strategy and Performance - The strategy introduced by CEO Jochen Zeitz has positively impacted Harley-Davidson's trajectory, reversing a decline that occurred prior to his leadership [4]. - Harley-Davidson has kept pace with its peers, a significant improvement compared to its prior underperformance before the Hardwire strategy was implemented [4]. - The board's actions in initiating the CEO search process were timely and appropriate, accommodating the dissident's preferences without dismissing them outright [4]. Group 2: Board and Governance - ISS acknowledges the strength of Harley-Davidson's board and governance structure, emphasizing the board's role in overseeing the execution of the Hardwire strategic plan [2]. - The board believes that H Partners' intentions are to undermine corporate governance practices by seeking to appoint unelected directors to influence the CEO search process [2]. - The criticisms against CEO Zeitz are considered overstated, with evidence suggesting his tenure has been more beneficial than detrimental [4]. Group 3: Shareholder Engagement - Harley-Davidson urges shareholders to protect their investment by voting "FOR ALL" of the company's nominees on the WHITE proxy card [5]. - The company has provided resources for shareholders needing assistance with the voting process, including a dedicated proxy solicitor [5].

Core Viewpoint - Harley-Davidson emphasizes the importance of its Board's skills and experience in selecting the next CEO and driving future growth, while criticizing H Partners' campaign as harmful and disingenuous, potentially jeopardizing shareholder value [1][3][4]. Group 1: Board and Management - The Board and management are dedicated to preserving Harley-Davidson's legacy and are actively transforming the business to enhance shareholder value [2]. - Each Director nominee possesses critical skills and institutional knowledge necessary for selecting a strong CEO, with experience in leadership, manufacturing, and successful business transformations [6][9]. - The current Board has a well-defined CEO search process and is committed to governance best practices, ensuring a smooth leadership transition [19][30]. Group 2: H Partners' Campaign - H Partners has been accused of launching a misleading campaign that undermines the Board's efforts and shareholder interests, particularly after their preferred CEO candidate did not gain majority support [4][19]. - The campaign is characterized as lacking constructive solutions and primarily aimed at gaining control over the Board rather than benefiting shareholders [15][19]. - H Partners previously supported the current CEO and Board decisions, raising questions about the motivations behind their recent actions [3][19]. Group 3: Company Performance - Despite facing one of the most challenging operating environments in its history, Harley-Davidson has outperformed its peers, with operating margins of 13% and free cash flow as a percentage of EBITDA at 70% [19][30]. - Recent product upgrades have led to a 12% increase in retail sales for certain models through the first nine months of 2023, indicating successful management execution [20].

Core Viewpoint - Investors are evaluating Harley-Davidson (HOG) and Tesla (TSLA) for potential value opportunities in the Automotive - Domestic sector, with HOG currently presenting a more favorable investment case than TSLA [1]. Valuation Metrics - HOG has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to TSLA, which has a Zacks Rank of 5 (Strong Sell) [3]. - HOG's forward P/E ratio is 7.20, significantly lower than TSLA's forward P/E of 148.85, suggesting HOG is undervalued relative to TSLA [5]. - HOG's PEG ratio is 0.35, while TSLA's PEG ratio is 7.83, indicating HOG's expected earnings growth is more favorable [5]. - HOG has a P/B ratio of 0.90, contrasting with TSLA's P/B of 11.99, further supporting HOG's valuation attractiveness [6]. Value Grades - HOG has received a Value grade of A, while TSLA has been assigned a Value grade of F, reflecting HOG's superior valuation metrics and estimate revision activity [6][7].

Core Insights - Harley-Davidson, Inc. reported first-quarter 2025 adjusted earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of 80 cents, but down from $1.72 per share in the same quarter last year [1] - Consolidated revenues for the quarter were $1.33 billion, a decline of 23% year-over-year [1] Segmental Highlights - Revenues from the Motorcycle and Related Products segment fell 27% year-over-year to $1.08 billion, missing the forecast of $1.17 billion due to lower motorcycle shipments [2] - Worldwide motorcycle shipments decreased by 33% to 38,600 units, below the estimate of 43,571 units [2] - Revenues from motorcycle sales were $864 million, down 29% year-over-year, with operating income plunging 51% to $116 million, falling short of the estimate of $165.2 million [2] Retail Performance - Harley-Davidson retailed 31,000 motorcycle units globally, a decline of 21% year-over-year, and below expectations of 38,000 units [3] - Retail motorcycle sales in North America decreased by 24% to 20,900 units, while sales in EMEA declined by 2%, and Asia Pacific and Latin America saw declines of 28% and 6%, respectively [3] Parts and Accessories - Revenues from parts and accessories fell 14% year-over-year to $143 million, missing the estimate of $162.2 million [4] - Revenues from apparel decreased by 11% year-over-year to $57 million, also falling short of the forecast of $63 million [4] Financial Services - Revenues for Harley-Davidson Financial Services totaled $245 million, a decline of 2% year-over-year, missing the forecast of $273 million [5] - Operating income increased by 19% to $64 million, surpassing the estimate of $51.4 million due to lower provisions for credit losses and reduced operating expenses [5] LiveWire Performance - Total shipments for LiveWire were 33 units, a decline of 72% from the previous year, with revenues down 42% to $3 million, missing the estimate of $6.5 million [6] - Operating loss narrowed from $29 million to $20 million, which was better than the projected loss of $29.7 million [6] Financial Position - As of March 31, 2025, Harley-Davidson had cash and cash equivalents of $1.93 billion, up from $1.59 billion at the end of 2024 [7] - Long-term debt increased to $4.96 billion from $4.46 billion as of December 31, 2024 [7] - The company withdrew its 2025 guidance amid macroeconomic uncertainties and tariff issues [7]

Group 1: Consumer Sentiment and Spending - The Trump tariff policy has severely impacted consumer confidence in the U.S., particularly among middle and low-income groups, leading to reduced spending [1] - Companies that primarily target middle-class consumers, such as McDonald's, General Motors, Harley-Davidson, and Hershey, are experiencing declining sales and profit pressures [1] - McDonald's reported its lowest sales in mature U.S. restaurants since the pandemic, attributing this to cautious spending by lower-income customers [1] Group 2: Automotive Industry Impact - Harley-Davidson's motorcycle sales fell by 24% year-over-year, with the CEO citing economic uncertainty and high interest rates as key factors [2] - General Motors, despite initial sales growth, has lowered its annual profit forecast by $2 billion to $3 billion due to tariff costs of $4 billion to $5 billion [2] - GM plans to increase North American prices by up to 1%, reversing an earlier expectation of a price decrease [2] Group 3: Confectionery Sector Challenges - Hershey reported a 15% decline in sales of candy, mints, and gum, with executives noting a growing consumer focus on value [3] - The company anticipates a loss of $15 million to $20 million in the current quarter due to tariffs on key raw materials like cocoa, which cannot be grown domestically [3] Group 4: Technology Sector Performance - Apple reported strong second-quarter sales driven by increased iPhone demand, potentially due to panic buying before new tariffs took effect [4] - Analysts warn that ongoing economic uncertainty poses real risks to both domestic and global economies, with signs of declining business and consumer confidence [4]

Harley-Davidson on Thursday suspended its full-year forecast as President Trump’s tariffs fuel economic uncertainty.“Due to the uncertain global tariff situation and macroeconomic conditions, we are withdrawing our full year 2025 financial outlook,” the motorcycle maker said in a statement.The company estimated its tariff bill could reach $175 million this year, even though most of its suppliers are in the US, because it still imports parts from China, which face a hefty 145% tariff.Harley-Davidson suspende ...

Core Insights - Harley-Davidson reported a revenue of $1.08 billion for the quarter ended March 2025, reflecting a decline of 26.8% year-over-year and a surprise of -3.24% compared to the Zacks Consensus Estimate of $1.12 billion [1] - The earnings per share (EPS) was $1.07, down from $1.72 in the same quarter last year, with an EPS surprise of +33.75% against the consensus estimate of $0.80 [1] Financial Performance Metrics - Harley-Davidson's worldwide retail motorcycle sales totaled 31,010 units, falling short of the average estimate of 36,821 units [4] - Total worldwide motorcycle shipments were 38,601, compared to the average estimate of 40,365 [4] - Revenue from motorcycles and related products was $863.86 million, slightly above the average estimate of $861.54 million, but still down 29.3% year-over-year [4] - Revenue from licensing was reported at $3.06 million, significantly below the average estimate of $8.03 million, representing a year-over-year decline of 65.8% [4] - Revenue from Live Wire was $2.74 million, compared to the estimated $6.64 million, marking a 41.7% decrease year-over-year [4] - Apparel revenue was $57.32 million, below the average estimate of $63.92 million [4] - Parts & Accessories revenue was $143.43 million, compared to the average estimate of $163.70 million, reflecting a year-over-year decline of 13.7% [4] - Financial services revenue was $244.96 million, slightly below the average estimate of $249.71 million, with a year-over-year change of -1.5% [4] Stock Performance - Over the past month, Harley-Davidson shares have returned -12.4%, contrasting with the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - Harley-Davidson's consolidated revenue in Q1 2025 decreased by 23%, with operating income at $160 million, a decline of 51% at HDMC, partially offset by a 19% increase in HDFS operating income [20][28] - The consolidated operating income margin for Q1 was 12.1%, down from 15.2% in the previous year, primarily due to lower volume impacting dealer inventory [20][25] - Earnings per share for Q1 was reported at $1.7, reflecting the overall decline in revenue and operating income [21] Business Line Data and Key Metrics Changes - HDMC revenue decreased by 27% in Q1, driven by a 33% decline in motorcycle shipments, totaling 39,000 units compared to 58,000 units in the prior year [22][23] - HDFS revenue was $245 million, a decrease of 2%, while operating income increased by 19% to $64 million due to lower provisions for credit losses [27][28] - LiveWire segment reported an operating loss of $20 million, with revenue decreasing due to lower unit sales of electric motorcycles [30] Market Data and Key Metrics Changes - Global retail sales were down 21% in Q1, with a 24% decline in North America, attributed to low consumer confidence [5][6] - EMEA region saw a retail decline of just 2%, while APAC experienced a 28% decline, primarily due to softness in China and Japan [7] - LATAM reported a 6% decline in retail sales year-over-year [7] Company Strategy and Development Direction - The company is focusing on a significant marketing development fund to support dealer networks and product launches closer to the riding season [6][10] - Harley-Davidson plans to introduce new entry-level products and expand its cruiser offerings, aiming for affordability and profitability [11][88] - The company is evaluating its investment in LiveWire due to challenges in the EV market, including slower adoption rates and regulatory hurdles [12][97] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the uncertain macroeconomic environment and its impact on consumer confidence, leading to the withdrawal of previous 2025 guidance [13][34] - There is cautious optimism regarding potential trade deals that may mitigate tariff impacts, although the situation remains fluid [14][59] - Sequential improvement in retail sales was noted from February to April, indicating a slight recovery in consumer demand [66] Other Important Information - The company achieved $142 million in operating cash flow, an increase of $38 million from the prior period, with total cash and cash equivalents at $1.9 billion [31][32] - Harley-Davidson repurchased 3.4 million shares for $87 million in Q1 2025 as part of its capital allocation strategy [33] Q&A Session Summary Question: What might the economics of a long-term strategic partnership look like for Harley Davidson? - Management emphasized the importance of demonstrating the premium value of HDFS and maintaining attractive offers for customers and dealers [39][40] Question: What has changed regarding the strategic value of HDFS? - The focus is on ensuring a market-based view of HDFS's value while still recognizing its strategic importance to the company [42] Question: Can you provide insight into the tariff impacts and anti-American sentiment? - Management noted that while tariffs pose challenges, the company has a strong U.S.-centric manufacturing base, and there has not been significant negative sentiment affecting sales [56][64] Question: How is the retail environment evolving, especially in April? - Sequential improvement was observed in retail sales from February to April, with management noting that April showed signs of recovery compared to March [66] Question: What led to the decision to bring back entry-level bikes? - The company aims to capitalize on the opportunity to create profitable entry-level models, having previously focused on core business investments [88] Question: How are cost savings being tracked for LiveWire? - LiveWire is projected to reduce operating losses significantly, with ongoing efforts to drive cost savings and achieve a sustainable business model [97]

Harley-Davidson (HOG) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $1.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 33.75%. A quarter ago, it was expected that this motorcycle maker would post a loss of $0.68 per share when it actually produced a loss of $0.93, delivering a surprise of -36.76%.Over the last four quarters, the com ...

Harley-Davidson (HOG) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Company Participants Shawn Collins - Director of IRJochen Zeitz - Chairman, President & CEOJonathan Root - Chief Financial Officer and President, Commercial Harley-Davidson, Inc.Robin Farley - Managing DirectorAlexander Perry - Director, Equity ResearchKarim Donnez - CEODavid Macgregor - President Conference Call Participants Craig Kennison - Director of Research Operations & Senior Research AnalystJoseph Altobello - MD & Senior AnalystJam ...