Harley-Davidson Q3 Earnings Report

Investing.com — Harley-Davidson Inc. reported third-quarter earnings that surpassed analyst expectations, despite a significant drop in revenue as the motorcycle industry faces challenges from high interest rates and economic uncertainty.

The iconic motorcycle manufacturer posted adjusted earnings per share of $0.91, beating the analyst estimate of $0.84. However, revenue fell 26% YoY to $1.15 billion, though still exceeding the consensus estimate of $972.72 million.

Harley-Davidson (NYSE:HOG)'s motorcycle shipments plummeted 39% in Q3 as dealers adjusted inventory levels in response to the current retail environment. Global retail motorcycle sales declined 13% YoY, with North American sales down 10% and international markets performing weaker than expected, dropping 18%.

"We have worked diligently through the quarter to mitigate the impact of high interest rates, and macroeconomic and political uncertainty, that continue to put pressure on our industry and customers, especially in our core markets," said Jochen Zeitz, Chairman, President and CEO of Harley-Davidson.

The company's financial services division, HDFS, saw operating income increase 29% YoY to $77 million, driven by higher interest income and a lower provision for credit losses.

Harley-Davidson now expects HDMC revenue to decline 14% to 16% for FY2024 compared to 2023, with an operating income margin between 7.5% and 8.5%.

The company's stock was down 1.55% following the earnings release, reflecting ongoing industry challenges despite the earnings beat.