Motorcycle maker Harley-Davidson Inc. (HOG), Wednesday said its first-quarter profit surged from last year, as improved economic conditions in U.S. boosted sales. Harley-Davidson's earnings and revenues for the quarter trumped Wall Street expectations.
The company also lifted its shipment guidance for the full-year 2012, sending its shares up about five percent on the New York Stock Exchange.
Chief Executive Keith Wandell said, "Our first quarter performance reflects the outstanding appeal of our products, the ongoing results of our transformation strategy, the efforts of our dealers and employees, and improving macro-economic conditions in the U.S."
In the first quarter, Harley-Davidson dealers sold 59,677 new Harley-Davidson motorcycles, a 20.3 percent improvement from last year. In U.S., motorcycles sales grew 25.5 percent, while internationally the growth was 11.2 percent.
"Harley-Davidson's market leadership among its demographic outreach targets we believe demonstrates the powerful and growing appeal of the brand to new generations and diverse groups of riders," Wandell said.
The company's shipment advanced to 64,263 motorcycles during the first quarter, from 53,827 motorcycles last year.
Milwaukee-based Harley-Davidson's first-quarter net income improved to $172.0 million or $0.74 per share from $119.3 million or $0.51 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.
Motorcycles and related products revenue for the quarter grew to $1.27 billion from $1.06 billion last year. Thirteen Wall Street analysts on a consensus estimated revenues of $1.22 billion for the quarter.
The financial services segment's operating income was $67.4 million for the first quarter, compared to $67.9 million last year.
Moving ahead, the company lifted its full-year shipment guidance to a range of 245 thousand to 250 thousand motorcycles, from prior estimate of 240 thousand to 245 thousand. The company said the new shipment guidance reflects the demand for its motorcycles and its limited ability to produce additional motorcycles. In the second quarter, Harley-Davidson expects to ship 79 thousand to 84 thousand motorcycles.
For the full year 2012, the company continues to expect gross margin between 34.75 percent and 35.75 percent, and capital expenditures between $190 million and $210 million.
HOG is currently trading at $52.84, up $2.48 or 4.93%, on a volume of 3.5 million shares, which is above the three-month average volume of 1.8 million.
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