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Harley Davidson (HOG) Q1 Earnings Top Estimates, Fall Y/Y
Harley-DavidsonHarley-Davidson(US:HOG) Zacks Investment Researchยท2024-04-26 16:40

Core Insights - Harley-Davidson, Inc. reported first-quarter 2024 adjusted earnings of $1.72 per share, exceeding the Zacks Consensus Estimate of $1.48 but down 16% year over year. Consolidated revenues were $1.73 billion, a decrease of 3% from the prior-year quarter [1] Segmental Highlights - The Motorcycle and Related Products segment generated revenues of $1.47 billion, down 5% year over year but above the forecast of $1.37 billion due to higher-than-expected motorcycle shipments. Global shipments totaled 57,700 motorcycles, a 7% decline year over year but exceeding projections of 55,663 units [2] - Revenues from motorcycle sales were $1.22 billion, down 6% year over year. Parts & accessories revenues decreased by 1% to $166 million, while apparel revenues fell 10% to $64 million. Licensing and other revenues increased significantly, with $9 million and $15 million, reflecting year-over-year growth of 44% and 51%, respectively [2] - Retail motorcycle units sold globally were 39,400, unchanged year over year. North American sales increased by 6% to 27,500 units, while EMEA and Asia Pacific sales declined by 11% and 12%, respectively. Latin America saw a slight increase of 2% [3] - Operating income from the motorcycle segment fell 29% year over year to $238 million due to lower volume and higher manufacturing costs [3] - Harley-Davidson Financial Services reported revenues of $249 million, a 12% increase year over year, surpassing the forecast of $233.5 million. However, operating income declined 8% to $54 million due to higher interest expenses and provisions for credit losses [3] LiveWire Performance - LiveWire's total shipments were 117 units, an 86% increase compared to the previous year. However, revenues decreased by 39% to $5 million, missing the estimate of $9.5 million due to lower-than-expected shipments. The operating loss widened from $25 million to $29 million, but was narrower than the projected loss of $31.1 million [4] Financial Position - Selling, general, and administrative expenses from the HDMC unit were $222.6 million. The company declared dividends of 17.25 cents per share during the quarter [5] - As of March 31, 2024, Harley-Davidson had cash and cash equivalents of $1.46 billion, down from $1.56 billion a year earlier. Long-term debt decreased to $4.99 billion from $5.27 billion [5] 2024 Guidance - For 2024, Harley-Davidson expects revenues from HDMC to be flat to down 9%. The operating income margin is projected to be between 12.6% and 13.6%. Operating income for Financial Services is expected to be flat to up 5%. The LiveWire segment anticipates motorcycle wholesale units in the range of 1,000-1,500, with an expected operating loss of $105-$115 million. Capital expenditure is projected to be between $225 million and $250 million [6]