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 £31.43 per share. In comparison, the NYSE-listed company had started the year 2021 at a lower £25.94 per share.

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

Harley reported £185.83 million of net profit in the first quarter that translates to £1.21 per share. In the comparable quarter of last year, its net profit was capped at a much lower £50.22 million, or 32.29 pence per share.

The motorcycle manufacturer valued its revenue in Q1 at £1.02 billion versus the year-ago figure of £930 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 £900 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 £4.44 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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