HOGHarley-Davidson$37.50 -0.87 (-2.27%) (As of 07/31/2024 ET)52-Week Vary$25.43▼$44.16Dividend Yield1.84percentP/E Ratio8.33Price Goal$45.14
Iconic bike producer Harley-Davidson Inc. NYSE: HOG juiced up its inventory with a brand new $1 billion inventory buyback program following its Q2 earnings report. The corporate reported robust prime and backside line efficiency, however its 2024 outlook was expectedly weak. A tricky macroeconomic local weather and softening client spending have been looming considerations that proceed to plague sturdy items purchases. The corporate has been providing promotions and incentives to filter inventories, which helped enhance income numbers. Nonetheless, this has additionally stunted demand for its 2024 fashions, which additionally lack promotions to incentivize sellers. This led to a decreasing of its full-year 2024 outlook.
Harley-Davison operates within the auto/tires/vehicles sector, competing with bike, Powersports, and leisure car producers, together with Honda Motor Co. Ltd. NYSE: HMC, Polaris Inc. NYSE: PII, and Thor Industries Inc. NYSE: THO.Get LiveWire Group alerts:Signal Up
Harley-Davidson Traders Have a Piece of three Corporations
Harley-Davison is the umbrella for the corporate’s three divisions. The Harley-Davidson Motorbike Firm (HDMC) designs, manufactures, licenses, and providers its bikes. It sells its bikes, attire, and components by means of a community of licensed sellers. Harley-Davison Monetary Providers (HDFS) offers financing choices for wholesale and retail patrons and point-of-sale (POS) insurance coverage and safety providers. LiveWire Group Inc. NYSE: LVWR sells electrical bikes and youngsters’ steadiness bikes, in addition to components and attire.
Traders in Harley-Davidson personal a chunk of all three firms. Whereas LiveWire is a standalone publicly traded firm, it’s nonetheless thought-about a subsidiary of Harley-Davidson, which owns a controlling curiosity between 70% and 90%. Harley-Davidson contains LiveWire ends in its earnings experiences.

HOG Makes an attempt an Ascending Triangle Breakout Sample
The every day candlestick chart for HOG illustrates an ascending triangle breakout try sample. This sample is comprised of a rising decrease trendline representing increased lows converging on the apex with the flat-top higher trendline at $36.97. As HOG will get nearer to the apex level, the inventory will both escape by means of the higher trendline or break down by means of the decrease trendline. The Q2 earnings launch gapped up the shares making an attempt to interrupt however has thus far closed again below the higher trendline. The every day relative energy index (RSI) remains to be rising by means of the 61-band. Pullback help ranges are at $35.16, $33.41, $31.67, and $29.41.
Headline Outcomes Look Sturdy However Reveal Weak point Beneath the Hood
Harley-Davidson reported Q2 EPS of $1.63, beating consensus estimates by 23 cents. Revenues rose 12% YoY to $1.62 billion, beating $1.29 billion consensus analyst estimates. North American retail efficiency was down 1%, however gross sales of its dearer Touring and CVO bikes surged 12% YoY, inflicting the EPS beat. HDMC’s revenues climbed 13%, pushed by its world cargo improve of 16%. HDFS working revenue rose 21%, and income grew 10% YoY.
The corporate had heavy promotions and incentives to filter stock, leaving patrons exhausted and demand gentle for its 2024 fashions. Motorbike gross sales rose 20%, however components & equipment gross sales fell 10% together with attire gross sales falling 4% YoY. Because of the heavy promotions, the gross margin fell 270 bps to 32.1%. Its Touring market share rose 5.3% to 75% within the first half of 2024.
Harley-Davidson Lowers 2024 Steerage Metrics
The corporate lowered its 2024 income for HDMC to be down 5% to 9% YoY, from the flat to 9% earlier forecast. HDFS working revenue is predicted to be flat to up 5% YoY. LiveWire electrical bike unit gross sales are anticipated to be between 1,000 and 1,500, with working losses of $105 million to $115 million. Harley-Davidson’s company-wide capital investments are anticipated to be between $225 million and $250 million. The working margin was lowered from 10.6% to 11.6%, down from earlier forecasts for $12.6% to 13.6%.
CEO Stays Cautious However Optimistic
Dividend Yield1.84% Annual Dividend$0.69 Annualized 3-Yr Dividend Growth14.47% Dividend Payout Ratio15.33% Current Dividend PaymentJun. 21 See Full Particulars
Harley-Davidson CEO Jochen Zeitz identified some YoY enhancements within the quarter. Consolidated working revenue rose 9% YoY to $241 million due to a 21% rise in HDFS, its financing division. HDFS’s working revenue grew 2% YoY, whereas LiveWire’s working loss was $4 million lower than the year-ago interval.
Excessive rate of interest impacts had been felt, however U.S. bike gross sales had been barely optimistic over the past 12 months. Internationally, EMEA noticed retail gross sales fall by 1%. Asia Pacific confirmed essentially the most weak point, with gross sales plunging 16% YoY, primarily in China. In North America, together with Canada, gross sales fell 1%, and in Latin America was flat. Zeitz identified that the typical Harley-Davidson buyer is 45, including that they anticipate clients to age into their merchandise whereas constructing model consciousness.
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