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Mar 28, 2021
Harley-Davidson Q1 2021 Earnings Report
Harley-Davidson reported strong first-quarter financial results and raised full-year financial guidance.
Key Takeaways
Harley-Davidson reported a strong first quarter with a 10% increase in consolidated revenue and significant net income improvement driven by both Motorcycles and Financial Services segments. The company has increased its full-year guidance for Motorcycles segment revenue and operating margin, as well as Financial Services segment operating income.
Delivered Q1 GAAP diluted EPS of $1.68, up $1.23 over Q1 2020.
Motorcycles and Related Products segment revenue up 12 percent amid strong retail demand for Touring motorcycles.
Significantly improved Motorcycles segment gross margin and operating margin driven by favorable mix following the Rewire product portfolio adjustments, lower sales incentives and reduced SG&A.
Increased Q1 cash flow from operations to $163 million, up $171 million over Q1 2020.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the full-year 2021, the company now expects Motorcycles segment revenue growth to be 30 to 35 percent, Motorcycles segment operating income margin of 7 to 9 percent, and Financial Services segment operating income growth of 50 to 60 percent.
Positive Outlook
- Motorcycles segment revenue growth to be 30 to 35 percent, an increase from the previously communicated growth range of 20 to 25 percent.
- Motorcycles segment operating income margin of 7 to 9 percent, which is 200 basis points better than previous guidance.
- Financial Services segment operating income growth of 50 to 60 percent, an increase from the previously communicated range of 10 to 15 percent.
- Capital expenditures of $190 million to $220 million.
- Cash allocation priorities remain to first fund growth through The Hardwire initiatives, then to pay dividends and, given the company’s continued strong cash position, the company will be evaluating share repurchases and may choose to repurchase shares.
Challenges Ahead
- Assuming the company is not able to mitigate the additional EU tariffs to any extent in 2021, the company expects the operating income margin would be 5 to 7 percent, in line with original guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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