NYSE$HOG

Harley-Davidson Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Harley-Davidson reported a solid third quarter with Hardwire strategic initiatives performing well amidst ongoing supply chain challenges.

Harley-Davidson's Q3 2021 results showed a 17% increase in consolidated revenue, driven by growth in the Motorcycles segment due to stronger unit sales and a favorable unit mix. Net income grew by 36%, influenced by growth in both the Motorcycles and Financial Services segments. The company reported GAAP diluted EPS of $1.05, up $0.27 over Q3 2020.

  • GAAP diluted EPS of $1.05, up $0.27 over Q3 2020.
  • Total HDI revenue grew 17 percent behind increased shipments and favorable motorcycle unit mix.
  • Motorcycles segment operating margin was 8.4 percent, which was 3.6 percentage points better than Q3 2020.
  • Financial Services segment operating income growth of $15 million over Q3 2020 driven by lower interest expense.

Headline financials

Total Revenue

$1.37B

Previous: $1.17B+17.1%
EPS (adj)

$1.18

Previous: $1.05+12.4%
US Wholesale Shipments

27.9K

Previous: 25.3K+10.4%
Capital Expenditures

-$61.5M

Previous: -$92.3M+33.4%
Free Cash Flow

$101M

Previous: $27.9M+263.5%
Net Income

$163M

Previous: $120M+35.6%
Operating Income

$204M

Previous: $138M+48.1%
Gross Profit

$515M

Previous: $489M+5.4%
Cash & Equivalents

$2.06B

Previous: $3.56B-42.1%
Total Assets

$11.2B

Previous: $12.5B-10.6%
Stock-Based Comp

$10.7M

Previous: $7.51M+42.4%

Revenue & EPS history

Harley-Davidson · Revenue · Quarterly

$1.37B

Q3 2021+17.1%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Harley-Davidson · $1.16B total across 5 segments · Q3 2021

  • Motorcycles
    $886M+29.5%
  • Parts & Accessories
    $205M-2.3%
  • Apparel
    $49M-0.7%
  • Other HDMC
    $12.6M+8.2%
  • Licensing
    $8.48M-4.6%

Forward guidance

For the full-year 2021, the company now expects Financial Services segment operating income growth of 95 to 105 percent, an increase from the previously communicated range of 75 to 85 percent and Capital expenditures of $135 million to $150 million, a decrease from the previously communicated range of $190 million to $225 million. Additionally, our full-year 2021 Motorcycles segment guidance remains unchanged relative to prior guidance. The company continues to expect Motorcycles segment revenue growth to be 30 to 35 percent and GAAP Motorcycles segment operating income margin of 6 to 8 percent given the EU’s decision to keep the current tariff at 31 percent while tariff negotiations occur.

Tailwinds

  • Financial Services segment operating income growth of 95 to 105 percent.
  • Capital expenditures of $135 million to $150 million.
  • Motorcycles segment revenue growth to be 30 to 35 percent.
  • GAAP Motorcycles segment operating income margin of 6 to 8 percent.
  • Cash allocation priorities remain to first fund growth through The Hardwire initiatives, then to pay dividends, and the company may also choose to execute discretionary share repurchases.

Headwinds

  • EU’s decision to keep the current tariff at 31 percent while tariff negotiations occur.
  • Ongoing supply chain challenges that our sector faces.
  • Impact of the revocation of the Binding Origin Information (“BOI”) decisions
  • Uncertainties regarding the quantity and mix of motorcycles that the company imports into the EU
  • Uncertainties regarding the size and duration of the EU tariffs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.2%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+1.6%

Avg return

30 days after

57%

41 / 72 earnings

Positive

+28.6%

Q1 2020

Best reaction

-17.8%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%+9.4%+5.0%
Q4 2025+4.0%+1.4%-10.8%
Q3 2025-6.6%-5.6%-12.5%
Q1 2025+2.8%+4.0%+8.0%
Q4 2024-1.6%-3.9%-2.7%
Q3 2024-6.7%-4.4%-1.7%
Q2 2024+8.7%+13.3%+12.6%
Q1 2024-11.9%-12.8%-10.7%
Q4 2023+6.7%+6.5%+11.4%
Q3 2023-9.2%-6.8%+5.8%
Q2 2023+2.8%+2.3%-11.0%
Q1 2023+0.5%-1.3%-10.7%
Q4 2022+9.8%+7.5%+1.7%
Q3 2022+12.2%+15.8%+28.5%
Q2 2022+10.2%+6.9%+16.6%
Q1 2022+1.6%+0.4%-0.4%
Q4 2021+20.0%+15.5%+7.4%
Q3 2021+4.3%+12.2%+5.4%
Q2 2021-8.6%-6.8%-9.7%
Q1 2021+14.4%+18.9%+21.2%
Q4 2020-17.8%-16.1%-12.5%
Q3 2020+16.8%+13.4%+41.3%
Q2 2020-3.6%-11.1%-3.9%
Q1 2020+28.6%+7.7%+23.8%
Q4 2019-2.9%-4.1%-10.5%
Q3 2019+6.7%+6.2%-3.5%
Q2 2019+4.1%+4.7%-6.7%
Q1 2019-4.9%-6.6%-13.7%
Q4 2018-0.4%+0.1%+1.4%
Q3 2018-2.6%-7.1%+3.5%
Q2 2018+8.8%+7.1%+3.1%
Q1 2018+3.2%+2.0%+2.0%
Q4 2017-12.4%-14.1%-18.4%
Q3 2017+3.1%+6.3%+3.3%
Q2 2017-6.2%-7.2%-9.4%
Q1 2017-5.0%-6.0%-11.2%
Q4 2016-2.3%-2.5%+1.2%
Q3 2016+10.2%+13.4%+16.9%
Q2 2016+4.6%+1.7%+3.9%
Q1 2016-0.0%
Q4 2015+6.7%
Q3 2015-16.1%
Q2 2015+6.7%
Q1 2015-9.0%
Q4 2014-0.9%
Q3 2014+6.1%
Q2 2014-3.7%
Q1 2014+6.2%
Q4 2013-3.7%
Q3 2013-2.4%
Q2 2013-0.9%
Q1 2013+1.6%
Q4 2012-0.4%
Q3 2012+6.5%
Q2 2012-4.7%
Q1 2012+5.0%
Q4 2010+0.5%
Q4 2011+0.5%
Q3 2011+0.3%
Q2 2011-7.0%
Q1 2011-1.0%
Q3 2010+6.4%
Q2 2010+0.6%
Q1 2009-4.3%
Q1 2010+1.4%
Q4 2007+1.6%
Q4 2009+1.6%
Q3 2009-5.3%
Q3 2008-5.3%
Q4 2008+4.7%
Q2 2008+4.7%
Q2 2009+4.7%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro