Harley-Davidson shares continue to trade in a bull market despite weak Q4 results

Harley-Davidson Inc. (NYSE: HOG) published its earnings report for the fiscal first quarter on Monday that beat Wall Street estimates, despite the novel challenges attributed to the ongoing Coronavirus pandemic.

Harley-Davidson shares that you can conveniently trade online via a range of online apps were reported a little under 10% up in premarket trading on Monday. Including the price action, the stock is now exchanging hands at ÂŁ31.43 per share. In comparison, the NYSE-listed company had started the year 2021 at a lower ÂŁ25.94 per share.

Harley-Davidson’s Q1 financial results versus analysts’ estimates

Harley reported ÂŁ185.83 million of net profit in the first quarter that translates to ÂŁ1.21 per share. In the comparable quarter of last year, its net profit was capped at a much lower ÂŁ50.22 million, or 32.29 pence per share.

The motorcycle manufacturer valued its revenue in Q1 at ÂŁ1.02 billion versus the year-ago figure of ÂŁ930 million. In the prior quarter (Q4), the Milwaukee-headquartered company had recorded a 39.3% decline in total revenue.

According to FactSet, experts had forecast the company to post ÂŁ900 million of revenue in the recent quarter. Their estimate for per-share earnings stood at a lower 64.57 pence.

In the first quarter, the American firm saw a 30% increase in its sales in North America. Sales were up 1% in the Asia Pacific, but slid 36% in EMEA and an even broader 59% in Latin America. Globally, Harley-Davidson’s retail motorcycle sales jumped 9% in Q1.

In separate news from the United States, Consumer Product Safety Commission said Peloton treadmills are unsafe for people with young children or pets.

Harley-Davidson’s guidance for the full financial year

For the full financial year, Harley now forecasts up to 35% growth in motorcycle revenue. In its prior guidance, it had expected up to 25% growth instead.

Chief Executive Jochen Zeitz commented on the financial update on Monday and said:

“We can see the initial signs of consumer excitement and optimism returning, and I am confident Harley-Davidson in 2021 is a significantly leaner, faster, and more efficient organization which is ready to win and successfully deliver on our 5-year Hardwire strategy, as the most desirable motorcycle brand in the world.”

Harley-Davidson closed almost flat on average in the stock market last year. At the time of writing, it is valued at ÂŁ4.44 billion and has a price to earnings ratio of 4,790.

The post Harley-Davidson tops analysts’ estimates for earnings and revenue in Q1 appeared first on Invezz.



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