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Harley-Davidson (HOG) Q1 Earnings Lag Estimates, Fall Y/Y
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Harley-Davidson, Inc. (HOG - Free Report) reported first-quarter 2022 adjusted earnings of $1.45 per share, missing the Zacks Consensus Estimate of $1.52. Lower-than-anticipated revenues from Motorcycles & Related Products and Financial Services segments resulted in this underperformance. The bottom line also declined 13.7% from $1.68 per share reported in the year-ago quarter.
The motorcycle manufacturer generated consolidated revenues (including motorcycle sales and financial services revenues) of $1,495 million, up 5% from the year-earlier quarter.
HarleyDavidson, Inc. Price, Consensus and EPS Surprise
Motorcycles and Related Products: Total revenues from the Motorcycle and Related products segment, which constitute the bulk of the firm’s overall revenues, gained 6% on a year-over-year basis to $1,303.1 million. But the top line missed the consensus mark of $1,334 million. The segment’s operating income declined 11% from $228 million to $203 million in the quarter under review. The figure missed the Zacks Consensus Estimate of $241 million.
In the March quarter, revenues from the sale of motorcycles came in at $1,059 million, increasing 4% year over year. The company shipped 54,800 motorcycles worldwide, flat year over year.
During the reported quarter, Harley-Davidson retailed 45,200 motorcycle units globally, up 2% year over year. Its retail motorcycle units sold in North America declined 5% to 31,300. Meanwhile, sales in the EMEA (Europe, Middle East and Africa), Asia Pacific and Latin America increased 28%, 16% and 13%, respectively.
Revenues for Parts & Accessories were up 13% from a year ago to $166 million and topped the consensus mark of $164 million. Revenues from Apparel went up 2% from the prior-year quarter’s figure to $51 million but lagged the consensus mark of $55 million.
Financial Services: Revenues for Harley-Davidson Financial Services totaled $192 million, up 1% year over year but missed the consensus mark of $195 million. Operating income declined 27% to $86 million. The metric, however, topped the consensus mark of $78 million.
Financial Position
In the first quarter of 2022, selling, general and administrative expenses rose 5.5% to $204.8 million from $193.5 million witnessed in the year-ago quarter. The firm generated $139 million of cash from operating activities in the first quarter. The company paid dividends of 15 cents per share in the reported quarter.
Harley-Davidson had cash and cash equivalents of $1,393.7 million as of Mar 31, 2022, significantly down from the $2,320.6 million recorded in the corresponding quarter of 2021. The long-term debt decreased to $4,470.1 million from $5,478.1 million recorded as of Mar 31, 2021.
2022 Guidance
For 2022, the company has restated its previous guidance and projections. Harley-Davidson still expects its operating income for Financial Services to decline 20-25%. Capital expenditure for the full-year remains within $190-$220 million.
The company’s expected revenues from the motorcycles segment continue growing in the band of 5-10% for the current year. Harley-Davidson has also kept the operating income margin expectation for the segment intact at 11-12%.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 11% over the past year.
Dorman Products has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.7% upwards in the past 60 days.
Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 2.1% over the past year.
Tesla has an expected earnings growth rate of 66.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 18.7% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 41.27%, on average. The stock has gained 31.8% over the past year.
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Harley-Davidson (HOG) Q1 Earnings Lag Estimates, Fall Y/Y
Harley-Davidson, Inc. (HOG - Free Report) reported first-quarter 2022 adjusted earnings of $1.45 per share, missing the Zacks Consensus Estimate of $1.52. Lower-than-anticipated revenues from Motorcycles & Related Products and Financial Services segments resulted in this underperformance. The bottom line also declined 13.7% from $1.68 per share reported in the year-ago quarter.
The motorcycle manufacturer generated consolidated revenues (including motorcycle sales and financial services revenues) of $1,495 million, up 5% from the year-earlier quarter.
HarleyDavidson, Inc. Price, Consensus and EPS Surprise
HarleyDavidson, Inc. price-consensus-eps-surprise-chart | HarleyDavidson, Inc. Quote
Segmental Highlights
Motorcycles and Related Products: Total revenues from the Motorcycle and Related products segment, which constitute the bulk of the firm’s overall revenues, gained 6% on a year-over-year basis to $1,303.1 million. But the top line missed the consensus mark of $1,334 million. The segment’s operating income declined 11% from $228 million to $203 million in the quarter under review. The figure missed the Zacks Consensus Estimate of $241 million.
In the March quarter, revenues from the sale of motorcycles came in at $1,059 million, increasing 4% year over year. The company shipped 54,800 motorcycles worldwide, flat year over year.
During the reported quarter, Harley-Davidson retailed 45,200 motorcycle units globally, up 2% year over year. Its retail motorcycle units sold in North America declined 5% to 31,300. Meanwhile, sales in the EMEA (Europe, Middle East and Africa), Asia Pacific and Latin America increased 28%, 16% and 13%, respectively.
Revenues for Parts & Accessories were up 13% from a year ago to $166 million and topped the consensus mark of $164 million. Revenues from Apparel went up 2% from the prior-year quarter’s figure to $51 million but lagged the consensus mark of $55 million.
Financial Services: Revenues for Harley-Davidson Financial Services totaled $192 million, up 1% year over year but missed the consensus mark of $195 million. Operating income declined 27% to $86 million. The metric, however, topped the consensus mark of $78 million.
Financial Position
In the first quarter of 2022, selling, general and administrative expenses rose 5.5% to $204.8 million from $193.5 million witnessed in the year-ago quarter. The firm generated $139 million of cash from operating activities in the first quarter. The company paid dividends of 15 cents per share in the reported quarter.
Harley-Davidson had cash and cash equivalents of $1,393.7 million as of Mar 31, 2022, significantly down from the $2,320.6 million recorded in the corresponding quarter of 2021. The long-term debt decreased to $4,470.1 million from $5,478.1 million recorded as of Mar 31, 2021.
2022 Guidance
For 2022, the company has restated its previous guidance and projections. Harley-Davidson still expects its operating income for Financial Services to decline 20-25%. Capital expenditure for the full-year remains within $190-$220 million.
The company’s expected revenues from the motorcycles segment continue growing in the band of 5-10% for the current year. Harley-Davidson has also kept the operating income margin expectation for the segment intact at 11-12%.
Zacks Rank & Other Key Picks
HOG currently carries a Zacks Rank #2 (Buy).
Other top-ranked players in the auto space include BRP Group, Inc. (DOOO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Dorman Products (DORM - Free Report) and Tesla Inc. (TSLA - Free Report) , each carrying a Zacks Rank #2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 11% over the past year.
Dorman Products has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.7% upwards in the past 60 days.
Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 2.1% over the past year.
Tesla has an expected earnings growth rate of 66.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 18.7% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 41.27%, on average. The stock has gained 31.8% over the past year.