NYSE$HOG

Harley-Davidson Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Harley-Davidson reported a decrease in revenue and operating income due to a decline in motorcycle shipments, partially offset by growth in financial services.

Harley-Davidson's Q3 2023 results reflect a challenging macro environment, with a 6% decrease in consolidated revenue and a 38% decrease in operating income. HDMC revenue declined by 9%, while HDFS revenue increased by 15%. The company reaffirms its full-year 2023 outlook.

  • Strategy remains grounded in desirability and profitability.
  • Successful launch of two new CVO motorcycles, CVO retail sales up +25%, with new features aligning with consumer preferences.
  • HDMC Revenue declined 9%, behind a 20% decrease in wholesale shipments.
  • LiveWire commenced production and launch of the Del Mar electric motorcycle.

Headline financials

Total Revenue

$1.55B

Previous: $1.65B-6.0%
EPS (adj)

$1.38

Previous: $1.78-22.5%
US Wholesale Shipments

30.2K

Previous: 37.2K-18.9%
Capital Expenditures

-$139M

Previous: -$84.9M-63.5%
Free Cash Flow

$59.7M

Previous: $176M-66.1%
Net Income

$199M

Previous: $261M-23.9%
Operating Income

$209M

Previous: $339M-38.2%
Gross Profit

$656M

Previous: $702M-6.6%
Cash & Equivalents

$1.88B

Previous: $1.73B+8.6%
Total Assets

$12.5B

Previous: $11.9B+4.5%
Stock-Based Comp

$20.1M

Previous: $13.8M+45.5%

Revenue & EPS history

Harley-Davidson · Revenue · Quarterly

$1.55B

Q3 2023-6%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Harley-Davidson · $2.96B total across 5 segments · Q3 2023

  • Parts & Accessories
    $1.85B+819.4%
  • Motorcycles
    $1.02B-9.8%
  • Apparel
    $49.3M-29.5%
  • Other HDMC
    $30.2M+37.1%
  • Licensing
    $9.59M-12.9%

Forward guidance

The Company reaffirms its most recent guidance and continues to expect: •HDMC: revenue growth of flat to 3% and operating income margin of 13.9 to 14.3% •HDFS: operating income decline of 20 to 25% •LiveWire: motorcycle unit sales of 600–1,000 and operating loss of $115 to $125 million •Harley-Davidson, Inc.: capital investments of $225 to $250 million

Tailwinds

  • HDMC: revenue growth of flat to 3%
  • HDMC: operating income margin of 13.9 to 14.3%
  • HDFS: operating income decline of 20 to 25%
  • LiveWire: motorcycle unit sales of 600–1,000
  • Harley-Davidson, Inc.: capital investments of $225 to $250 million

Headwinds

  • challenging macro and consumer backdrop
  • HDMC Revenue declined 9%, behind a 20% decrease in wholesale shipments
  • HDFS operating income decline of $22 million, or down 27 percent, was driven by an increased provision for credit losses and higher interest expense.
  • LiveWire operating loss of $25 million in the third quarter, in-line with expectations, was driven by product development and other spending associated with the launch of the Del Mar electric motorcycle.
  • Global retail sales of Harley-Davidson motorcycles in the third quarter were down 16 percent versus prior year, adversely impacted primarily by macro conditions in key geographies.

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 2023

Historical avgQ3 2023

+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%

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