On Monday, Harley-Davidson Inc., the 118-year old American motorcycle manufacturer based on Milwaukee, Wisconsin, unveiled quarterly earnings’ report for its fiscal first quarter of 2021, which had insanely beaten an analysts’ profit estimate, as the American motorcycle maker had raised its full-year profit forecast amid a transmutation in focus on touring bikes instead cheaper entry-level models.
In point of fact, Harley-Davidson Inc.’s upbeat first-quarterly earnings’ report for Q1, 2021, came forth as a latest justification of Chief Executive Jochen Zeitz’s move to switch the bikemaker’s focus more on to a high profit-margin touring bike in expense of cheaper entry-level models.
Aside from that, followed by a rosy first-quarter report, shares’ prices of Harley-Davidson Inc., which had soared as much as 36 per cent since its last earnings’ report back in February, wrapped up the day 9.53 per cent higher to $44.23 apiece after leapfrogging as much as 11.43 per cent in pre-market trading.
Harley-Davidson raises full-year operating profit forecast to 7%-9%
According to the Milwaukee-based century-old American bikemaker’s quarterly earnings’ report for fiscal Q1, 2021, Harley reported a 31 per cent jump in retail sales in the United States on a year-on-year basis, while the company had raised its full-year operating profit estimates to 7%-9%, however, had also added that a failure to address a roughly 56 per cent import tariff in EU from June this year according to a EU ruling, would adversely affect its full-year operating profit forecast.
In factuality, a latest EU ruling had nullified Harley’s credentials to usher its motorbikes in EU from any of its international manufacturing facilities at a tariff of 6 per cent. However, Harley was expecting its revenues from motorbike business to grow between a range of 30% to 35% in 2021, an increase from a prior estimate of 20%-25% reported in February this year.
Apart from that, Harley’s net earnings for the quarter stood at $1.68 per share on an adjusted basis, above a Wall St. estimate of 88 cents per share.