Harley-Davidson Blows Out Profit Predictions, Again

Estimated read time 2 min read

The American motorcycle manufacturer is really on a roll lately.

Yet again, American motorcycle manufacturer Harley-Davidson has exceeded profit expectations. As reported by Reuters, the company reported greater profits for Q4 2022, leading shares to increase as much as 9.6% after the announcement. The profits increase was attributed to a surge in motorcycle shipments and strong pricing strategy, overcoming inflationary pressures.

See the crash a motorcyclist is lucky to have survived here.

Many have been prophesying the end of Harley-Davidson for the past several years. Those predictions hit a feverish pitch when the company announced in the fall of 2020 it was pulling out of India, the largest motorcycle market in the world. However, in the past 7 quarters Harley has met or beat Wall Street earnings forecasts, dismaying its detractors.

Now Harley-Davidson says it’s anticipating revenue to increase further in 2023. Last year it grappled with a production slowdown thanks to a problem with parts provided by a third-party supplier. If production moves smoothly this year, dealerships should have good inventory and customers can get their factory-ordered bikes relatively quickly.

While the company certainly has benefited from more people finally getting that motorcycle they always wanted, thanks in part to Covid and the shutdowns, not all of its competitors are sitting as pretty. Perhaps the retreat from a very cost-conscious Indian market and concentrating more on North America where its high-end models do well was exactly the right move for Harley-Davidson.

Despite all the positive talk, Harley executives seem aware of some serious challenges on the horizon this year. High interest rates and the likelihood they will increase further puts pressure on the company’s financial services arm as well as threatens to slow sales. However, even with price increases last year, sales increased.

Something about realizing life is precious and short has led to people finally taking to two wheels in North America and elsewhere. That might sound counterintuitive to some, but there are enough to whom it makes sense to really move the needle for Harley-Davidson.

Source: Reuters

Images via Harley-Davidson

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