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.
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.
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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.
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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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