Harley-Davidson Jumps as We Hit the Road Again

imageStock Markets23 minutes ago (Apr 19, 2021 10:28AM ET)

(C) Reuters.

By Christiana Sciaudone — The U.S. is born to be wild, again.

Harley-Davidson (NYSE:HOG) roared 11% higher after raising guidance and blasting through expectations for the first quarter.

Motorcycle sales should increase between 30% and 35% compared to a previous estimate of 20% to 25%, with income margins of 7% to 9%, 200 basis points better than before. Financial services are expected to grow 50% to 60% compared to the initial estimate of 10% to 15%.

Earnings per share of $1.68 was almost double what analysts had forecast on sales of $1.42 billion, compared to estimates of $1.26 billion.

“I am very pleased with the pace of recovery that we have seen across our business, as demonstrated by the strong financial results this quarter. The actions we have taken to reshape the business are having a positive impact on our results, especially for our most important North American region,” said Jochen Zeitz, chairman, president and chief executive officer. “I am confident Harley-Davidson in 2021 is a significantly leaner, faster, and more efficient organization which is ready to win and successfully deliver on our 5-year Hardwire strategy.”

The motorcycle maker appears to be making good on promises of a turnaround, thanks to demand out of North America, with sales jumping 30%, while Latin American and European sales tumbled. Shares hit their lowest in over a decade at the outset of the pandemic, which was followed by Zeitz’s appointment and a plan to cut 700 positions and reduce costs.

Harley-Davidson Jumps as We Hit the Road Again

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.