Investors get revved upHarley-Davidson proves its still King of the Road with its strongest earnings report in five years.
- The stock took a ride to multi-month highs and gained 15% after it surprised investors with a Q4 profit, beating on both ends with EPS of $0.14 compared to the LPS of $0.38 analysts expected, on top of consolidated revenue that was up 40% to $1.02bn.
- Apparently, Harleys are back in. Motorcycle revenue alone rose 71% to $546m in Q4 as it faced heightened demand for its products. The growth is likely to continue given it’s expecting FY 2022 revenue to jump up to 10% from 2021’s record $5.3bn.
- CEO Jochen Zeitz has been focusing on the more profitable products while trying to expand into international markets – motorcycle shipments grew by 39% despite delays and supply shortages.
Milad Fakurian / Unsplash
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A Harley PartyHarley Davidson stock hit full throttle on the back of an electric spin-off.
- Prices popped up 29% on Monday to a nearly five-month high before closing up 4.70%.
- It’s spinning off its electric motorcycle division, LiveWire, in a $1.7bn SPAC deal that will make it the world’s first publicly traded e-motorcycle company.
- It might be the first to debut, but it’s not the first in the race. There are some heavy competitors out there that are selling e-bikes way lower prices, like Sondors, Energica, and Zero.
Harley-Davidson / Unsplash