By Christiana Sciaudone
Investing.com — The U.S. is born to be wild, again.
Harley-Davidson (NYSE:HOG) roared 11% higher after raising guidance and blasting through expectations for the first quarter.
Motorcycle sales should increase between 30% and 35% compared to a previous estimate of 20% to 25%, with income margins of 7% to 9%, 200 basis points better than before. Financial services are expected to grow 50% to 60% compared to the initial estimate of 10% to 15%.
Earnings per share of $1.68 was almost double what analysts had forecast on sales of $1.42 billion, compared to estimates of $1.26 billion.
“I am very pleased with the pace of recovery that we have seen across our business, as demonstrated by the strong financial results this quarter. The actions we have taken to reshape the business are having a positive impact on our results, especially for our most important North American region,” said Jochen Zeitz, chairman, president and chief executive officer. “I am confident Harley-Davidson in 2021 is a significantly leaner, faster, and more efficient organization which is ready to win and successfully deliver on our 5-year Hardwire strategy.”
The motorcycle maker appears to be making good on promises of a turnaround, thanks to demand out of North America, with sales jumping 30%, while Latin American and European sales tumbled. Shares hit their lowest in over a decade at the outset of the pandemic, which was followed by Zeitz’s appointment and a plan to cut 700 positions and reduce costs.
Harley-Davidson Jumps as We Hit the Road Again
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