Harley-Davisdon’s Q3 numbers are in. Third quarter 2018 GAAP diluted EPS was up 70% to $0.68. A year ago GAAP diluted EPS was $0.40. Third quarter 2018 net income was $113.9 million on consolidated revenue of $1.32 billion vs. net income of $68.2 million on consolidated revenue of $1.15 billion in 2017.
International retail motorcycle sales were also up 2.6%… all good news for Wall Street. Main Street USA, not so much: U.S. retail sales were down 13.3%, while worldwide retail sales decreased 7.8%.
“Third quarter progress tracked to our plans with numerous highlights including another quarter of improved international retail sales growth and increased year-over-year earnings per share,” stated CEO/President Matt Levatich. “We unveiled our ‘More Roads to Harley-Davidson’ accelerated plan for growth, and made strong progress already through September.
“As we manage our business with resilience in a challenging time in our history, we are leveraging our strengths for a more promising road ahead. We are investing to build the next generation of Harley-Davidson riders and we are optimizing our business to drive profitability and cash flow. Through September, cash flow was very strong and revenue was up over 3% despite lower motorcycle shipments.
“In the third quarter, we delivered new products and innovations with our model year 2019 motorcycles and engaged our dealers to support bringing the LiveWire™ electric motorcycle to market in 2019,” Levatich added. “Our brand and select products are now also accessible through a Harley-Davidson branded Amazon storefront in the U.S and significant support programs and dealer incentives were implemented to strengthen the dealer network – the hub of our customer experience.”
Third Quarter 2018
- More Roads accelerated plan for growth unveiled and progress made
- EPS $0.68, up vs prior year ($0.78 excluding manufacturing optimization costs)
- HDFS earnings up year-over-year on improved loss performance
- Repurchased 1.9 million shares; paid $0.37 per share dividend, up 1.4 percent versus prior year quarter
- International retail sales growth accelerated
- Manufacturing optimization initiative on track, reduced total cost estimate
- Confirmed full-year shipment and operating margin guidance
- 2019 motorcycle innovation enhances product leadership in Touring and Cruiser segments
- 115th anniversary celebrations demonstrated power of iconic global brand
The Washington Post notes Harley beats Street expectations:
