Harley-Davidson's Q4 Mixed Results, CEO Zeitz Maintains Optimism Despite Sales Dip
Portfolio Pulse from Akanksha Bakshi
Harley-Davidson Inc (NYSE:HOG) reported mixed Q4 fiscal 2023 results with HDMC + LiveWire sales of $807 million, missing the consensus of $880.22 million. Revenue was down 8% YoY to $1.05 billion, with a notable decline in HDMC revenue by 14% due to lower volumes, partially offset by a 15% revenue growth at HDFS. EPS was $0.18, beating the consensus of $0.04. The company experienced a contraction in gross profit margin and an expanded operating loss in HDMC. However, cash from operating activities increased to $754.89 million. CEO Zeitz remains optimistic, highlighting the launch of a new model year as a foundation for growth in 2024. The company expects flat to down 9% HDMC revenue growth and an operating loss for LiveWire electric motorcycle unit.
February 08, 2024 | 5:01 pm
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Harley-Davidson reported mixed Q4 results with a miss on sales but beat on EPS. The company sees challenges but remains optimistic with new model launches aimed at driving growth in 2024.
The mixed Q4 results with a sales miss but an EPS beat indicate a complex short-term outlook for HOG. The decline in revenue and expanded operating loss are concerning, but the beat on EPS and optimistic outlook for 2024 based on new model launches could stabilize the stock. The slight decrease in share price reflects market reaction to the mixed results. The company's optimistic outlook and strategic focus on new models may counterbalance the negative aspects in the short term.
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