Shares of Harley-Davidson Inc. cruised towards a five-week excessive Thursday, after the bike maker beat fourth-quarter revenue expectations by a large margin, at the same time as bike shipments continued to fall resulting from “prudent” administration of stock by sellers.
Internet revenue dropped to $25.8 million, or 18 cents a share, from $41.9 million, or 28 cents a share, in the identical interval a yr in the past. However that beat the FactSet consensus for earnings per share of 4 cents.
The massive revenue beat comes at the same time as gross margin, declined 3.6 share factors to 22.9%, as greater gross sales incentives to counter decrease quantity and elevated manufacturing prices offset decrease materials prices and improved gross sales combine.
The inventory
HOG,
climbed 2.2% in premarket buying and selling, which places it on observe to open across the highest closing worth seen since Jan. 3.
Income declined 7.8% to $1.05 billion, however topped the FactSet consensus of 998.2 million.
Motorbike shipments fell 13.2% to 29,500 bikes — the third straight quarter of declines — whereas bike gross sales declined 12.5% to $583 million and components and equipment gross sales dropped 13.9% to $130 million.
Harley-Davidson attire gross sales sank 21.9% to $57 million.
The corporate stated international bike shipments declined resulting from “prudent vendor stock administration and market situations,” whereas attire gross sales dropped as “excessive vendor stock ranges” resulted in decrease replenishment.
For 2024, the corporate expects bike gross sales to be flat to down 9%.
Geographically, bike gross sales in North America fell 8.9% to 17,500, as the present excessive interest-rate surroundings weighed, whereas gross sales in Europe, Center East and Africa (EMEA) sank 22.7% to six,800, amid weak spot within the France and Germany markets.
Harley stated it bought 514 LiveWire electrical bikes within the fourth quarter, up from 69 a yr in the past, and expects to ship 1,000 to 1,500 EMs in 2024.
In the meantime, income at Harley-Davidson Monetary Companies elevated 15% to $246 million, amid greater curiosity revenue, whereas the enterprise phase’s working revenue fell 9.4% resulting from greater curiosity bills and an elevated provision for credit score losses.
Harley’s inventory has rallied 25.1% over the previous three months by means of Wednesday, however has dropped 29.8% over the previous 12 months. Compared, the S&P 500 index
SPX
has superior 21.3% over the previous yr.