- Harley Davidson Inc PIG reported Group revenue growth of 21% in the third quarter of FY22 year-over-year to $1.65 billion.
- Motorcycles and related products (HDMC) segment revenue rose 24% to $1.44 billion, beating consensus of $1.37 billion.
- The increase in HDMC revenue was driven by a strong rebound in global motorcycle shipments after being negatively impacted by an unexpected production disruption in the second quarter.
- Harley-Davidson’s EPS of $1.78 beat the consensus of $1.41.
- Motorcycle revenue was up 28%, parts and accessories were down 2%, apparel was up 41% and licensing was up 26%.
- Gross profit margin in HDMC increased 740 basis points Y/Y to 34.1%.
- Consolidated operating income increased 66% year over year to $338.7 million. HDMC’s operating income increased 164% year over year to $258 million.
- Harley-Davidson generated $575 million in cash from operations year-to-date. As of September 25, 2022, it held $2.04 billion in cash and cash equivalents.
- outlook: Harley-Davidson reiterated its guidance and expects FY22 HDMC revenue growth of 5% to 10%, HDMC operating income margin of 11% to 12% and HDFS operating income decline of 20% to 25%.
- It lowered the prospects for capital investments to $170 million – $190 million of $190 million – $220 million.
- Price promotion: HOG shares are trading up 13.43% at $42.10 on the latest check Wednesday.
- Photo via Wikimedia Commons
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