Harley-Davidson up 15% on Tuesday: what’s fuelling the stock?

Shares of Harley-Davidson Inc (NYSE: HOG) are up nearly 15% on Tuesday as the motorcycle company reported an unexpected profit for its fiscal fourth quarter.

What the earnings report tells us

Harley-Davidson said its net income printed at $21.6 million that translates to 14 cents per share. In the comparable quarter of last year, it was still in $96.4 million of loss or 63 cents per share. On an adjusted basis, the American motorcycle manufacturer earned 15 cents per share.

The Wisconsin-based company generated $1.016 billion in revenue versus the year-ago figure of $725 million. According to FactSet, experts had forecast 34 cents of per-share loss on $669 million in revenue.

Also on Tuesday, BofA Securities reiterated its “buy” rating on HOG with a price target of $70 per share that represents over 70% upside from here. In December, Harley-Davidson said its EV unit will list on the New York Stock Exchange.

Guidance for the full financial 2022

For the full financial year, Harley-Davidson now forecasts a 5.0% to 10% growth in its motorcycles and related products revenue from fiscal 2021’s $4.54 billion. Its guidance assumes supply constraints will ease in the back half of 2022 and exceeds Wall Street expectations.

In the earnings press release, the NYSE-listed firm said it is committed to using the cash on hand to fund growth via its Hardwire initiatives. Harley-Davidson will also execute discretionary stock buybacks and pay dividends to shareholders. CEO Jochen Zeitz said:

We delivered a strong finish to the year, in which we’ve seen proof points on all elements of our Hardwire Strategy. Looking ahead, we’re fully committed to achieving our long-term Hardwire Strategy, as the most desirable motorcycle brand and company in the world.

The post Harley-Davidson up 15% on Tuesday: what’s fuelling the stock? appeared first on Invezz.

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 All Rights Reserved.

To Top