Harley-Davidson shares drop after reporting Q4 loss, missing estimates

Investing.com - Harley-Davidson Inc (NYSE:HOG) reported a wider-than-expected loss on Wednesday for the fourth quarter of 2024, as the iconic motorcycle manufacturer continued to face challenges in the discretionary products market.

The Milwaukee-based company posted a loss of $0.93 per share for the quarter, missing analyst estimates of a $0.66 per share loss. Revenue fell 35% to $688 million, also falling short of the $712 million consensus estimate.

The company shares were down over 2% in pre-market trading on Wednesday. 

Harley-Davidson's motorcycle segment (HDMC) saw a sharp 47% decline in revenue to $420 million, with global motorcycle shipments plummeting 53% to 14,010 units compared to the same quarter last year. Global retail sales of new motorcycles dropped 15% year-over-year.

"In 2024, we saw our performance being significantly impacted by the continued cyclical headwinds for discretionary products, including the high-interest rate environment affecting consumer confidence," Jochen Zeitz, Chairman, President and CEO of Harley-Davidson said in a press release. 

Despite the challenges, Zeitz highlighted some positive developments, noting that the launch of new Street Glide and Road Glide touring motorcycles contributed to nearly 5% growth in the U.S. Touring segment and drove Harley-Davidson's market share to 74.5% in 2024.

For the full year 2024, Harley-Davidson reported diluted earnings per share of $3.44, with HDMC operating income of $278 million for an operating margin of 6.7%. Global motorcycle shipments for the year totaled 148,862, down 17% from the previous year.

Looking ahead to 2025, the company expects HDMC revenue to be flat to down 5%, with an operating income margin between 7.0% and 8.0%. Harley-Davidson projects its diluted earnings per share to be flat to down 5% for the full year 2025.