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Riding on Strong Demand, Harley-Davidson Surpasses Q1 Revenue Expectations
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Riding on Strong Demand, Harley-Davidson Surpasses Q1 Revenue Expectations

Motorcycle Manufacturer Harley-Davidson, Inc. (NYSE: HOG) has posted better-than-expected revenues for the first quarter of 2022.

Revenues rose 5% to $1.5 billion and surpassed analysts’ estimates of $1.31 billion. Meanwhile, GAAP EPS declined 14% year-over-year to $1.45 but came in line with analysts’ expectations.

Revenue of Harley-Davidson Motor Company (HDMC) grew 6% year-over-year to $1.3 billion on the back of favorable pricing and growth in the Parts & Accessories, and Apparel segments.

Global retail motorcycle sales jumped 2% to 45,200 units, and the revenue of Harley-Davidson Financial Services (HDFS) rose 1% to $192 million.

“As we enter the second year of our five-year Hardwire strategic plan, we are pleased to see strong consumer demand for Harley-Davidson products across all regions,” the company said in a release.

Outlook

The company has reaffirmed its guidance for 2022. It continues to expect HDMC revenue to grow in the range of 5% to 10%. HOG also anticipates making capital investments of $190 million to $220 million during the year.

About Harley-Davidson

Wisconsin-based Harley-Davidson manufactures and sells custom, cruiser and touring motorcycles. It also offers motorcycle parts, accessories, general merchandise, and related services.

Stock Rating

Based on three Buys, two Holds and one Sell, Harley-Davidson has a Moderate Buy consensus rating. HOG’s average price target of $51.67 implies 42.3% upside potential from current levels. Shares have lost 26.1% over the past year.

Hedge Fund Trading Activity 

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Harley-Davidson is currently Very Positive, as the cumulative change in holdings across all seven hedge funds that were active in the last quarter was an increase of 1.1 million shares.

Conclusion

The company seems to have performed well during the quarter despite the ongoing supply-chain disruptions and the macroeconomic challenges posed by the Russia-Ukraine crisis.

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