Harley-Davidson Exceeds Expectations

Shares of Harley-Davidson Inc. (HOG) rose 1% in premarket trading Thursday, following an impressive performance in the fourth quarter. Despite facing challenges from declining motorcycle shipments due to dealer inventory management and market conditions, the iconic motorcycle manufacturer managed to outperform profit expectations by a significant margin.

Stellar Financial Results

Harley-Davidson reported a net income of $25.8 million, or 18 cents a share, compared to $41.9 million, or 28 cents a share, in the same period last year. The quarterly earnings per share surpassed the FactSet consensus of 4 cents. While the company experienced a decline in revenue by 7.8% to $1.05 billion, it still exceeded the FactSet consensus of $998.2 million.

Motorcycle Shipments and Sales

The challenging market conditions were reflected in the decline of motorcycle shipments by 13%, marking the third consecutive quarter of decline for Harley-Davidson. Motorcycle sales also dropped by 12.5%, resulting in $583 million in revenue. Additionally, parts and accessories sales witnessed a decline of 13.9%, generating $130 million in revenue.

Embracing Innovation

Embracing the demand for electric motorcycles, Harley-Davidson managed to sell 514 LiveWire electric motorcycles in the fourth quarter, a substantial increase from the previous year's sales of 69 units. The company aims to ship between 1,000 and 1,500 electric motorcycles in 2024, further contributing to their commitment to innovation and sustainability.

In conclusion, despite facing hurdles due to challenging market conditions, Harley-Davidson Inc. has proven its strength by exceeding profit expectations in the fourth quarter. Embracing the future of transportation, the company is moving towards electric motorcycles and anticipates continued success in the years to come.