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Harley-Davidson (HOG) Rallies 13% Since Q2 Earnings Beat
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Shares of Harley-Davidson, Inc. (HOG - Free Report) have risen 13.3% since the company released its earnings on Jul 25 before the opening bell. Shares have got a boost from better-than-expected earnings and revenues. The top and bottom lines also increased on a year-over-year basis. Additionally, the company unveiled a share repurchase program of $1 billion through 2026 to investors’ delight.
HOG reported second-quarter 2024 adjusted earnings of $1.63 per share, which beat the Zacks Consensus Estimate of $1.43 and soared 34% year over year. Higher-than-anticipated revenues and operating income from the Motorcycles & Related Products segment primarily resulted in the outperformance. The motorcycle manufacturer generated consolidated revenues (including motorcycle sales and financial services revenues) of $1.62 billion, up 12% from the prior-year quarter.
Harley-Davidson Motor Company: Total revenues from the Motorcycle and Related Products segment, constituting the bulk of the firm’s overall revenues, grew 13% on a year-over-year basis to $1.35 billion and exceeded our forecast of $1.23 billion on higher-than-expected motorcycle shipments. Motorcycle shipments worldwide increased 16% to 49,700 units, topping our estimate of 42,440 units. In the quarter under review, revenues from the sale of motorcycles came in at $1.07 billion, up 20% year over year. Operating income for the segment inched up 2% to $198 million from $194 million in the corresponding quarter of 2023 and beat the Zacks Consensus Estimate of $190.1 million.
During the reported quarter, Harley-Davidson retailed 50,000 motorcycle units globally, down 3% year over year. Its retail motorcycle units sold in North America decreased 1% to 34,800. Sales in EMEA or Europe, the Middle East and Africa declined 1% year over. Sales in the Asia Pacific contracted 16%, while Latin America sales remained flat year over year.
Revenues for parts & accessories were down 10% from a year ago to $194 million and missed our estimate of $215 million. Revenues from apparel tailed off 4% year over year to $63 million and fell short of our projection of $82.3 million.
Harley-Davidson Financial Services: Revenues for Harley-Davidson Financial Services totaled $264 million, up 10% year over year, and crossed our forecast of $259 million. Operating income increased 21% to $71 million but missed our estimate of $86.7 million.
LiveWire: During the reported quarter, the total shipment for LiveWire was 158 units, rocketing 379% from the year-ago quarter levels. Revenues declined 8% to $6 million. Operating loss narrowed from $32 million to $28 million. The reported loss was slightly wider than our projection of $27.3 million.
Financial Position
In the second quarter, selling, general and administrative expenses from the HDMC unit increased to $235.2 million from $223.1 million in the year-ago quarter. The company paid dividends of 17.25 cents per share in the reported quarter.
Harley-Davidson had cash and cash equivalents of $1.85 billion as of Jun 30, 2024, up from $1.52 billion as of Jun 30, 2023. In the same period, the long-term debt decreased to $4.94 million from $5.76 million recorded on Jun 30, 2023.
2024 Guidance
For 2024, the company expects revenues from HDMC to be down 5-9% on a year-over-year basis. The operating income margin expectation for the motorcycles segment is in the range of 10.6-11.6%. HOG expects its operating income for Financial Services to be flat to up 5% compared to 2023.
For the LiveWire segment, motorcycle wholesale units are expected to be in the range of 1,000-1,500. Operating loss for the segment is anticipated to be in the range of $105-$115 million. Capital expenditure projection for the full year is estimated to be in the range of $225-$250 million.
Key Releases From the Auto Space
General Motors (GM - Free Report) reported second-quarter 2024 adjusted earnings of $3.06 per share, which surpassed the Zacks Consensus Estimate of $2.67. The bottom line also increased from the year-ago quarter’s level of $1.91. Solid results from the GMNA segment led to the outperformance. Revenues of $47.97 billion beat the Zacks Consensus Estimate of $44.94 billion and increased from $44.75 billion recorded in the year-ago period. General Motors had cash and cash equivalents of $22.5 billion as of Jun 30, 2024. The long-term automotive debt at the end of the quarter was $15.4 billion.
Ford (F - Free Report) reported second-quarter 2024 adjusted earnings per share of 47 cents, which missed the Zacks Consensus Estimate of 64 cents and declined from 72 cents recorded in the year-ago quarter. The company’s consolidated second-quarter revenues came in at $47.8 billion, up 6.3% year over year. Ford had cash and cash equivalents of $19.95 billion as of Jun 30, 2024. Long-term debt, excluding Ford Credit, totaled $18.69 billion at the end of the second quarter of 2024.
PACCAR Inc. (PCAR - Free Report) recorded earnings of $2.13 per share for the second quarter of 2024, which lagged the Zacks Consensus Estimate of $2.15 and also declined from $2.33 per share recorded in the year-ago period. The underperformance mainly stemmed from lower pretax profit from the Trucks and Financial Services segment.Consolidated revenues (including trucks and financial services) came in at $8.77 billion, down from $8.88 billion in the corresponding quarter of 2023. PACCAR’s cash and marketable debt securities amounted to $7.8 billion as of Jun 30, 2024, compared with $8.66 million as of Dec 31, 2023.
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Harley-Davidson (HOG) Rallies 13% Since Q2 Earnings Beat
Shares of Harley-Davidson, Inc. (HOG - Free Report) have risen 13.3% since the company released its earnings on Jul 25 before the opening bell. Shares have got a boost from better-than-expected earnings and revenues. The top and bottom lines also increased on a year-over-year basis. Additionally, the company unveiled a share repurchase program of $1 billion through 2026 to investors’ delight.
HOG reported second-quarter 2024 adjusted earnings of $1.63 per share, which beat the Zacks Consensus Estimate of $1.43 and soared 34% year over year. Higher-than-anticipated revenues and operating income from the Motorcycles & Related Products segment primarily resulted in the outperformance. The motorcycle manufacturer generated consolidated revenues (including motorcycle sales and financial services revenues) of $1.62 billion, up 12% from the prior-year quarter.
HOG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Harley-Davidson, Inc. Price, Consensus and EPS Surprise
Harley-Davidson, Inc. price-consensus-eps-surprise-chart | Harley-Davidson, Inc. Quote
Segmental Highlights
Harley-Davidson Motor Company: Total revenues from the Motorcycle and Related Products segment, constituting the bulk of the firm’s overall revenues, grew 13% on a year-over-year basis to $1.35 billion and exceeded our forecast of $1.23 billion on higher-than-expected motorcycle shipments. Motorcycle shipments worldwide increased 16% to 49,700 units, topping our estimate of 42,440 units. In the quarter under review, revenues from the sale of motorcycles came in at $1.07 billion, up 20% year over year. Operating income for the segment inched up 2% to $198 million from $194 million in the corresponding quarter of 2023 and beat the Zacks Consensus Estimate of $190.1 million.
During the reported quarter, Harley-Davidson retailed 50,000 motorcycle units globally, down 3% year over year. Its retail motorcycle units sold in North America decreased 1% to 34,800. Sales in EMEA or Europe, the Middle East and Africa declined 1% year over. Sales in the Asia Pacific contracted 16%, while Latin America sales remained flat year over year.
Revenues for parts & accessories were down 10% from a year ago to $194 million and missed our estimate of $215 million. Revenues from apparel tailed off 4% year over year to $63 million and fell short of our projection of $82.3 million.
Harley-Davidson Financial Services: Revenues for Harley-Davidson Financial Services totaled $264 million, up 10% year over year, and crossed our forecast of $259 million. Operating income increased 21% to $71 million but missed our estimate of $86.7 million.
LiveWire: During the reported quarter, the total shipment for LiveWire was 158 units, rocketing 379% from the year-ago quarter levels. Revenues declined 8% to $6 million. Operating loss narrowed from $32 million to $28 million. The reported loss was slightly wider than our projection of $27.3 million.
Financial Position
In the second quarter, selling, general and administrative expenses from the HDMC unit increased to $235.2 million from $223.1 million in the year-ago quarter. The company paid dividends of 17.25 cents per share in the reported quarter.
Harley-Davidson had cash and cash equivalents of $1.85 billion as of Jun 30, 2024, up from $1.52 billion as of Jun 30, 2023. In the same period, the long-term debt decreased to $4.94 million from $5.76 million recorded on Jun 30, 2023.
2024 Guidance
For 2024, the company expects revenues from HDMC to be down 5-9% on a year-over-year basis. The operating income margin expectation for the motorcycles segment is in the range of 10.6-11.6%. HOG expects its operating income for Financial Services to be flat to up 5% compared to 2023.
For the LiveWire segment, motorcycle wholesale units are expected to be in the range of 1,000-1,500. Operating loss for the segment is anticipated to be in the range of $105-$115 million. Capital expenditure projection for the full year is estimated to be in the range of $225-$250 million.
Key Releases From the Auto Space
General Motors (GM - Free Report) reported second-quarter 2024 adjusted earnings of $3.06 per share, which surpassed the Zacks Consensus Estimate of $2.67. The bottom line also increased from the year-ago quarter’s level of $1.91. Solid results from the GMNA segment led to the outperformance. Revenues of $47.97 billion beat the Zacks Consensus Estimate of $44.94 billion and increased from $44.75 billion recorded in the year-ago period. General Motors had cash and cash equivalents of $22.5 billion as of Jun 30, 2024. The long-term automotive debt at the end of the quarter was $15.4 billion.
Ford (F - Free Report) reported second-quarter 2024 adjusted earnings per share of 47 cents, which missed the Zacks Consensus Estimate of 64 cents and declined from 72 cents recorded in the year-ago quarter. The company’s consolidated second-quarter revenues came in at $47.8 billion, up 6.3% year over year. Ford had cash and cash equivalents of $19.95 billion as of Jun 30, 2024. Long-term debt, excluding Ford Credit, totaled $18.69 billion at the end of the second quarter of 2024.
PACCAR Inc. (PCAR - Free Report) recorded earnings of $2.13 per share for the second quarter of 2024, which lagged the Zacks Consensus Estimate of $2.15 and also declined from $2.33 per share recorded in the year-ago period. The underperformance mainly stemmed from lower pretax profit from the Trucks and Financial Services segment.Consolidated revenues (including trucks and financial services) came in at $8.77 billion, down from $8.88 billion in the corresponding quarter of 2023. PACCAR’s cash and marketable debt securities amounted to $7.8 billion as of Jun 30, 2024, compared with $8.66 million as of Dec 31, 2023.