Harley-Davidson to Report Q1 2024 Earnings Amid Refocused Strategy and Strong U.S. Market Share

Harley-Davidson, the iconic Milwaukee-based motorcycle company known for its distinctive engine sound, is set to report its Q1 2024 earnings on Thursday. The company is navigating a challenging macro environment but maintains a strong U.S. market share and is focused on a refocused strategy under new leadership.

In the previous quarter, Harley-Davidson reported revenues of $1.05 billion, down 7.8% year-on-year, but beat analyst revenue expectations by 20.4%. For the upcoming quarter, analysts are expecting a 24.7% year-on-year decline in revenue to $1.35 billion, with adjusted earnings anticipated to be $1.54 per share. The majority of analysts covering the company have reconfirmed their estimates, suggesting they expect the business to stay the course.

Despite the challenging environment, including high interest rates, Harley-Davidson continues to outperform the market with share gains in its core categories. The company has a commanding leadership position in its core profit-focused segments, such as touring and large cruisers, where it has over 75% and 80% market share in the U.S., respectively. Harley-Davidson's devoted customer base, known as the Harley Owners Group (H.O.G.), has more than 1,400 local chapters worldwide, and this allegiance is not lost upon analysts.

Harley-Davidson has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years on average by 19.3%. The company's shares have declined 7% over the last month, heading into the earnings with an analyst price target of $45.2, compared to the current share price of $39.74.

Why this matters: Harley-Davidson's Q1 2024 earnings report will provide insights into the effectiveness of the company's refocused strategy and its ability to maintain strong market share in a challenging economic environment. The iconic brand's performance has implications for the broader motorcycle industry and consumer discretionary spending trends.

As Harley-Davidson prepares to release its Q1 2024 earnings, analysts and investors will be closely watching to see if the company can continue its track record of beating expectations. With a strong U.S. market share and a loyal customer base, Harley-Davidson appears well-positioned to navigate the current macro challenges. However, the declining revenue expectations highlight the ongoing pressures facing the motorcycle industry.

Key Takeaways

• Harley-Davidson to report Q1 2024 earnings on Thursday, facing macro challenges.
• Analysts expect 24.7% YoY revenue decline to $1.35B, with $1.54 adjusted EPS.
• Harley maintains strong U.S. market share, over 75% in touring and 80% in cruisers.
• Harley has history of beating revenue estimates, shares down 7% in past month.
• Q1 earnings to provide insights into Harley's refocused strategy and industry trends.