What's Going On With Harley-Davidson Shares After Q1 Results?

Harley-Davidson, Inc. HOG shares are trading lower on Thursday.

The company reported first-quarter adjusted earnings per share of $1.72, beating the analyst consensus of $1.51. 

The company reported first-quarter HDMC + LiveWire sales of $1.48 billion, beating the consensus of $1.34 billion. HDMC revenue is down 5%, primarily due to a planned decrease in motorcycle shipments.

Consolidated revenue in the first quarter was down 3%, driven by an HDMC revenue decrease, partially offset by HDFS revenue growth of 12%.

In the first quarter, global motorcycle shipments decreased by 7%. The first quarter gross margin was down 4.5 points due to the impacts of pricing and sales incentives, lower volume, and higher manufacturing costs. 

The first quarter operating income margin was down 5.4 points, where operating expenses were roughly flat in the quarter.

Harley-Davidson generated $104 million of cash from operating activities. The company exited the quarter with cash and equivalents of $1.5 billion.

Outlook: “Harley-Davidson delivered a good start to the year with a six percent retail growth in North America, our largest and most important region,” said Jochen Zeitz, Chairman, President and CEO, Harley-Davidson. 

For the full year 2024, the company continues to expect HDMC revenue flat to down 9% and operating income margin of 12.6%-13.6%.

Harley-Davidson sees LiveWire operating loss of $(105) million-$(115) million in FY24, versus the previous guidance of an operating loss of $(115) million-$(125) million.

The company projects LiveWire electric motorcycle unit sales of 1,000 to 1,500. Harley-Davidson anticipates capital investments of $225 million to $250 million.

Price Action: HOG shares are trading lower by 13.7% to $34.06 at last check Thursday. 

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