Harley-Davidson Q3 Profit Down

(RTTNews) - Harley-Davidson, Inc. (HOG) Thursday announced 24 percent decline in third-quarter earnings, while revenues were down 6 percent from the previous year. Looking ahead to the full year 2023, the company reaffirmed its outlook.

The company reported earnings of $199 million or $1.38 per share for the third quarter, compared to $261 million or $1.78 per share last year.

On average, 12 analysts polled by Thomson Reuters expected the company to earn $1.36 per share. Analysts estimates usually exclude special items.

Revenue for the quarter declined to $1.549 billion from $1.649 billion a year ago, driven by 9 percent fall in Harley-Davidson Motor Company or HDMC revenues.

Wall Street expected $1.36 billion.

Jochen Zeitz, Chairman, President and CEO, Harley-Davidson said, "Against a challenging macro and consumer backdrop, we have been able to achieve a result that preserves profitability at an industry-leading level. In addition, we successfully launched our pinnacle CVO motorcycles, with CVO retail sales up 25%."

Looking ahead to the full year 2023, the company reaffirmed its most recent guidance and continues to expect HDMC revenue growth of flat to 3 percent and an operating income margin of 13.9 to 14.3 percent.

HDFS operating income is expected to decline 20 to 25 percent, while LiveWire motorcycle unit sales is still projected to be 600-1,000 and operating loss of $115 to $125 million. Harley-Davidson, Inc. capital investments for the full year is expected to be in a range of $225 to $250 million.