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Harley-Davidson Stock Revs Higher After Smoking Third-Quarter Earnings

Harley-Davidson stock jumps after reporting third-quarter earnings and sales that smoke analysts’ forecasts amid strong post-pandemic demand for its machines.

Harley-Davidson  (HOG) - Get Harley-Davidson, Inc. (HOG) Report stock jumped on Wednesday after the motorcycle maker reported third-quarter earnings that smoked analysts’ forecasts amid a massive post-pandemic recovery in demand of its two-wheel machines.

The Milwaukee-based company said it earned $163 million, or $1.18 an adjusted share, in the quarter ended September 30, vs. income of $120 million, or $1.05 a share, in the same period a year ago. Analysts polled by FactSet had been expecting earnings of 77 cents a share.

Sales clocked in at $1.36 billion, up 30% from the $1.17 billion in brought in a year ago and also above the $1.1 billion expected by analysts polled by FactSet.

Harley-Davidson CEO Jochen Zeitz noted the company’s ‘Hardwire’ restructuring program continued to help cut costs, boost efficiency and help the bottom line.

"Our teams continue to work to mitigate the impact of the ongoing supply chain challenges that our sector faces, however our performance underlines that we are on course to deliver our long-term Hardwire strategy," Zeitz said.

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Revenue from Harley-Davidson’s motorcycles segment was up significantly during the third quarter, primarily driven by a 12% increase in wholesale shipments, favorable motorcycle unit mix and pricing, the company said.

The company also reported growth in its financial services segment, which grew by $15 million over the third quarter of 2020 thanks to lower interest costs.

For the full year, Harley-Davidson said it now expects financial services operating income growth of between 95% and 105%, an increase from its previously communicated range of between 75% and 85%.

The company also expects capital expenditures to fall to between $135 million and $150 million, down from previous guidance of between $190 million and $225 million. It's full-year 2021 motorcycles segment guidance remains unchanged.

Shares of Harley-Davidson on Wednesday closed 3.6% higher at $36.73, putting its year-to-date return at 5.96%.