Harley-Davidson Third Quarter Earnings Beat Expectations But Revenue Misses Forecast.

hdHarley-Davidson Inc. (HOG) this Tuesday morning October 21, 2014 reported net income of $150.1 million in its third quarter. On a per-share basis, the Milwaukee-based company said it had profit of 69 cents versus 73 cents a share, a year ago. The results topped Wall Street expectations. The average estimate of analysts was for earnings of 60 cents per share. Harley-Davidson posted revenue of $1.13 billion (down 1.3%) in the period, missing the Street forecasts. Analysts expected $1.14 billion. Harley-Davidson shares have declined 16 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 3 percent. The stock has fallen 11 percent in the last 12 months. (Update today at noon. HOG stock is sharply up 6.46%)

Retail Harley-Davidson Motorcycle Sales:

Dealers worldwide sold 73,217 new Harley-Davidson® motorcycles in the third quarter of 2014 compared to 70,517 motorcycles in the year-ago quarter.

This year, U.S. dealers sold 50,167 new Harley-Davidson motorcycles in the third quarter, up 3.4 percent compared to sales of 48,529 motorcycles in the year-ago period.

In international markets, dealers sold 23,050 new Harley-Davidson motorcycles in the third quarter compared to 21,988 motorcycles in the year-ago period, with sales up 12.8 percent in the Asia Pacific Region, 1.7 percent in the EMEA Region and 7.0 percent in the Latin America Region and down 5.8 percent in Canada.

Through the first nine months of 2014, dealers sold 220,850 new Harley-Davidson motorcycles worldwide compared to 214,964 motorcycles in the year-ago period, with retail unit sales up 1.9 percent in the U.S., 11.0 percent in the Asia Pacific Region, 5.9 percent in the EMEA Region and 1.2 percent in the Latin America Region and down 11.4 percent in Canada compared to the year-ago period.

Guidance:

Harley-Davidson continues to expect to ship 270,000 to 275,000 motorcycles to dealers and distributors worldwide in 2014, an approximate 3-1/2 percent to 5-1/2 percent increase from 2013. The Company continues to expect full-year 2014 operating margin of 17.5 percent to 18.5 percent in the Motorcycles segment. The Company also continues to expect capital expenditures of $215 million to $235 million in 2014.

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14 Responses to “Harley-Davidson Third Quarter Earnings Beat Expectations But Revenue Misses Forecast.”


  1. 1 BobS Oct 21st, 2014 at 8:13 am

    Stock prices have fallen 16% since the beginning of the year…how much further would it need to fall before the BoD starts shaking things up? H-D has put out an impressive amount of innovation lately, but how patient will investors be?

  2. 2 chingon choppers Oct 21st, 2014 at 8:46 am

    BobS,

    Can you please elaborate on innovation!!!!

    Thanks

  3. 3 BobS Oct 21st, 2014 at 9:18 am

    Sure: Rushmore, Street, Livewire.

  4. 4 chingon choppers Oct 21st, 2014 at 9:37 am

    REALLY…… Those are not innovations. Those are changes.

    Innovation: the act or process of introducing new ideas, devices, or methods.

    A new fairing and or water cooled top end is not a new innovation. They are changes made to the same technology to make the consumer think that they’ve changed their product to meet “new” innovations that other motor companies are making.

    Guess what motor company is the only one that still has the same old 40 year old primary chain technology? HD

  5. 5 BobS Oct 21st, 2014 at 11:09 am

    One entirely new ground up model including a new engine, one entirely new ground up concept including electric propulsion, and brand new electronics and operational changes into existing designs…innovation. If incremental improvements don’t count as innovation then Ducati’s desmodronic 90 degree v-twin is 42 years old. BMW’s boxer is 90 years old, Honda’s inline 4 dates back 45 years. Just because Harley’s biggest sellers look like old bikes and are based on old designs does not mean the company hasn’t been innovating. Who was the first motorcycle company to offer a kick ass LED headlight? Touchscreen blue tooth dash? That fairing vent is pretty slick, and I’m the Victory rider normally accused of hating on Harley…

  6. 6 richard Oct 21st, 2014 at 11:34 am

    It would be interesting if Victory and Indian would breakout their sales by units and $ as Harley does. Then we could make direct comparisons as to how the American builders are doing with respect to each other.

    Looks as if Harley continues to do well.

  7. 7 chingon choppers Oct 21st, 2014 at 1:22 pm

    LMAO

  8. 8 morpion Oct 21st, 2014 at 2:23 pm

    i would like to know how many indians and victorys sold in 2014,,,,to compare with h-d,,,,,,,,,,,,,,,,,,,,,,,,,,,,

  9. 9 Mr Dick Oct 22nd, 2014 at 7:12 am

    Sales in Canada down, hmm, maybe because new bikes are 22% higher here than in the U.S. I can get a barely used SG there, saving 6 grand. Deeley imports stinks.

  10. 10 Woody's Oct 24th, 2014 at 10:24 am

    Mr. Dick, what’s the current import tax & duties for items brought into Canada? Just curious since your tax structure includes healthcare and mine (US) doesn’t. I realize Deeley gets to set whatever brokerage fees they want, but how much of the 22% is because of that? Thx.

  11. 11 Mr Dick Oct 24th, 2014 at 10:43 pm

    Woody’s, no duty on N.A. products-NAFTA. Healthcare has no bearing on MSRP, we get hosed later by the sales tax. It all boils down to greed, Deeley and HD. 3rd 1/4 shipments 50167 compared to 2598, means we get the shaft, take it or leave it suckers. Not just HD, all the auto makers, cycles, atv, snowmobile, and on and on. All we do is subsidize these companies so they can duke it out in the states.

  12. 12 Woody Oct 25th, 2014 at 7:15 am

    Wow! Didn’t realize you were quoting pre-tax. That does hurt. Same thing with Metrics/Polaris bikes too, huh?

  13. 13 Mr Dick Oct 26th, 2014 at 7:27 am

    Woody, same with metrics, etc. If I was to replace my 2010 CVO Ultra with a new CVO LTD., I’m looking at just over 54 grand, that’s with taxes, freight, pdi, tire levy, doc. fee. Then I want pipes, tune, etc., more$$$$. Nice huh?

  14. 14 Woody's Oct 27th, 2014 at 8:44 pm

    Yeah, so much for free trade but it goes both ways, I guess.

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Cyril Huze