Harley-Davidson (NYSE:HOG) Races Past Q4 Estimates
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Harley-Davidson (NYSE:HOG) Races Past Q4 Estimates

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Harley-Davidson shares are ticking higher today after the company delivered a resilient fourth-quarter performance amid a challenging environment.

Harley-Davidson (NYSE:HOG) shares are ticking higher today after the motorcycle company delivered better-than-anticipated numbers for the fourth quarter and provided a financial outlook for the full year. In Q4, while revenue declined by 7.9% year-over-over-year to $1.05 billion, the figure still outpaced estimates by $174.7 million. Further, EPS of $0.18 exceeded expectations by a wide margin of $0.15.

While the industry environment remains challenging, Harley is focusing on driving gains in its most profitable products and markets. In Q4, revenue in the company’s HDMC (Harley-Davidson Motor Company) segment declined by 14%, with shipments decreasing by 13% to 29,544 units. In contrast, revenue ticked higher by 15% in its HDFS (Harley-Davidson Financial Services) segment.

In addition, higher sales incentives and other manufacturing costs negatively impacted Harely’s margins. Notably, the company witnessed lower motorcycle sales across its geographic segments, except for Latin America. On the other hand, Harley saw a 645% jump in unit sales of its electric motorcycles (albeit on a lower base).

For Fiscal Year 2024, Harley expects revenue growth in the HDMC segment to be flat to down 9%. Electric motorcycle unit sales are anticipated between 1,000 and 1,500. In comparison, the company shipped 660 electric motorcycles in 2023.

Is HOG Stock a Good Buy?

Overall, the Street has a Moderate Buy consensus rating on Harley-Davidson and the average HOG price target of $37.80 points to a modest 9.4% potential upside in the stock. That’s on top of a nearly 25.7% jump in the company’s share price over the past three months.

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