Harley-Davidson Shares Surge 12% on Strong Q3 Beat
Harley-Davidson (NYSE:HOG) shares rose more than 12% on Wednesday following the company’s reported Q3 results, with EPS of $1.78 coming in better than the Street estimate of $1.41. Revenue was $1.65 billion, beating the Street estimate of $1.37 billion.
The company reaffirmed its fiscal 2022 guidance, expecting HDMC revenue growth of 5-10% with an operating income margin of 11-12%.
According to the analysts at RBC Capital, the company had a really strong performance in the quarter, and no doubt that its turnaround efforts are taking hold. Management has gotten the company to a much better place to execute on demand, and demand seems to be OK for now, but tough to have a ton of confidence in 2023 given macro uncertainty and headwinds. The analysts raised their price target on the company's shares to $42 from $37 while maintaining their Sector Perform rating.
| Symbol | Price | %chg |
|---|---|---|
| VKTR.JK | 132 | 0 |
| 000040.KS | 682 | 1.32 |
| 603129.SS | 146.7 | 0 |
| 603766.SS | 6.55 | 0 |
Harley-Davidson Stock Surges 5% on DA Davidson Upgrade
Harley-Davidson (NYSE:HOG) shares gained nearly 5% pre-market today after DA Davidson upgraded the company to Buy from Neutral and increased its price target to $47.00 from $38.00. The decision to adopt a more bullish stance was influenced by positive feedback from the motorcycle industry checks.
According to DA Davidson, their latest round of checks revealed a more optimistic sentiment from dealers compared to the previous assessment in May. It appears that April was likely the weakest month of the quarter for the company, as retail performance gradually improved throughout the second quarter. Furthermore, dealers made significant progress in clearing non-current inventory, and early indications suggest that pre-order demand for Harley-Davidson's new custom vehicle operation (CVO) product launch is surpassing expectations.
Looking ahead to Harley-Davidson's upcoming earnings release on July 27, DA Davidson believes that the company is positioned to surpass the relatively low expectations surrounding retail performance, second-quarter earnings, and their outlook for the second half of 2023.
