MILWAUKEE - Harley-Davidson, Inc. (NYSE: NYSE:HOG) shares jumped 5% after the iconic motorcycle manufacturer reported a significant earnings beat for the second quarter of 2024. The company delivered adjusted earnings per share (EPS) of $1.63, surpassing analyst expectations by $0.20, and saw revenue climb to $1.62 billion, well above the consensus estimate of $1.29 billion.
The positive market response reflects the company's robust performance despite a challenging market environment. Harley-Davidson's second-quarter success was attributed to an increase in U.S. market share within a declining market, particularly in the core category of Touring motorcycles, which experienced unit growth of more than 11%.
"Our second-quarter results demonstrate the strength of our brand and the effectiveness of our Hardwire strategy," said Jochen Zeitz, Chairman, President, and CEO of Harley-Davidson. "Our focus on innovation and cost productivity is yielding results, as evidenced by our increased market share and improved financial metrics."
In addition to the earnings beat, the company's overall revenue rose by 13% compared to the same quarter last year, driven by a 16% increase in global motorcycle shipments. The Harley-Davidson Motor Company (HDMC) segment reported an operating income margin of 14.7%, while the Harley-Davidson Financial Services (HDFS) segment saw its operating income rise by 21% and revenue by 10%.
Looking forward, Harley-Davidson revised its full-year 2024 outlook, anticipating HDMC revenue to be down between 5% and 9% compared to 2023, with an operating income margin ranging from 10.6% to 11.6%. However, HDFS operating income is expected to remain flat or increase up to 5% compared to the previous year.
Additionally, the company announced a plan to repurchase $1 billion of shares through 2026, signaling confidence in its future performance.
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