Harley-Davidson Inc.’s stock soared 9% Thursday, putting it on track for its highest close in almost two years, after the motorcycle company crushed earnings estimates for the fourth quarter. The move put the stock
HOG,
+9.61%
on track for its highest close since it ended at $51.96 on May 17, 2021.
The Milwaukee, Wisconsin-based company managed to rebound from a production shutdown in May 2022, after a third-party supplier said it had a regulatory compliance matter relating to a component. That forced Harley-Davidson to suspend production for a two-week period. Motorcycle shipments rose 18% in the quarter over same period a year earlier, propelling revenue up 12%, to $1.142 billion from $1.016 billion a year ago. That was ahead of the FactSet consensus of $918 million. The beat came during what is typically a seasonally weak period, as motorcycle riders await the launch of new models in the new year. “Compared to our estimate, better top-line performance (which benefited from strong unit growth and favorable pricing) alongside manufacturing leverage and operating cost control helped drive upside in the quarter,” said William Blair analysts, who have a market-perform rating on the stock. The report was the first under the company’s new three-segment structure: Harley-Davidson Motor Company, or HDMC, which comprises design, manufacturing, marketing and sales of the company’s motorcycles and related products; Harley-Davidson Financial Services, or HDFS, which provides fina …