MILWAUKEE - Harley-Davidson, Inc. (NYSE:HOG) reported a robust start to 2024, with its first-quarter earnings per share (EPS) of $1.72 surpassing the analyst consensus of $1.52. The company's revenue also exceeded expectations, coming in at $1.73 billion against a forecasted $1.35 billion, driven by a significant sales beat.
The positive financial results sent the motorcycle manufacturer's shares up by 2.7%.
Despite a challenging environment with a 5% decline in Harley-Davidson Motorcycle Company (HDMC) revenue due to a planned decrease in motorcycle shipments, the company's overall retail growth in North America was up 6%.
This growth was primarily fueled by the strong sales of new Touring motorcycles, which were introduced at the end of January. The financial services segment, Harley-Davidson Financial Services (HDFS), reported a revenue increase of 12%, although its operating income saw an 8% decrease.
The company's consolidated revenue dipped by 3% compared to the same quarter last year, with a notable 29% drop in consolidated operating income. The operating income margin also fell from 21% in the previous year to 15%. Despite these declines, the company's stock price responded favorably to the earnings report, signaling investor confidence in Harley-Davidson's performance and future prospects.
Jochen Zeitz, Chairman, President, and CEO of Harley-Davidson, expressed satisfaction with the company's performance, stating, "We are very pleased with the reception of this year's new product line-up led by our new Touring motorcycles and look forward to continuing the positive momentum as the riding season comes into full swing."
The company also highlighted the successful launch of the S2 Mulholland, the third electric motorcycle from its LiveWire brand, which has taken the lead in the U.S. market for on-road electric motorcycles.
Investors are closely watching Harley-Davidson's progress as it updates its full-year 2024 financial outlook, aiming to maintain the momentum established in the first quarter. The company's share repurchase program also reflects its confidence, with $98 million worth of shares bought back during the quarter.
As Harley-Davidson navigates the remainder of the year, the market's response to its first-quarter performance suggests optimism for the iconic brand's strategic direction and product offerings.
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