Harley-Davidson (NYSE:HOG) is a Milwaukee-based company that manufactures and sells motorcycles in the United States and around the world. Shares of the motorcycle manufacturer have fallen 17% month-over-month as of close on Thursday, October 24, 2024. Meanwhile, the stock is down 12% in the year-to-date period at the time of this writing.
The company saw its stock fall after it provided a downward revision to its full-year forecast. For its 2024 outlook, Harley-Davidson projected that motorcycle revenue will be down 14% to 16% - compared to its previous forecast which was a 5% to 9% decline. Meanwhile, operating profit margins are expected to be reported between 7.5% and 8.5%. Previously, operating profit was projected to reach a margin of 10.6% to 11.6%.
“We are expecting further interest rates reductions and improved customer confidence will provide the industry with a needed tailwinds,” said Harley-Davidson chief executive officer (CEO) Jochen Zeitz. Moreover, Zeitz said that he was “optimistic” about the likelihood for improved results in fiscal 2025.
The company reported third quarter (Q3) fiscal 2024 earnings per share (EPS) of $0.91 – down from $1.38 in the prior year period. This reflected lower volumes in Harley-Davidson’s major markets. It suffered a 10% retail sales decline in North America.
Shares of Harley-Davidson currently possess a price-to-earnings ratio of 6.4. That puts the motorcycle manufacturer in very favourable value territory at the time of this writing. Moreover, it offers a quarterly dividend of $0.17 per share, representing a 2.18% yield.
