Benzinga | Jul 21, 2021 07:20AM EDT

Harley-Davidson Shares Gain On Strong Q2 Earnings

* Harley-Davidson Inc (NYSE:HOG) reported second-quarter FY21 revenue growth of 77% year-on-year to $1.53 billion, beating the analyst consensus of $1.42 billion.

* The retail motorcycles sales increased 24% Y/Y, driven by a solid Q2 North America retail performance.

* Revenue from the Motorcycles and Related Products segment went up 99% Y/Y due to a 100% increase in motorcycle shipments.

* Gross profit for the quarter was $407 million, a 278% increase Y/Y.

* Selling, administrative, and engineering expenses rose 17.4% Y/Y to $220.4 million.

* An 18.3% operating margin with $280.4 million in operating income was recorded in the quarter.

* Net cash provided by operating activities year-to-date was $644 million.

* Adjusted EPS of $1.41 beat the analyst consensus of $1.17.

* Cash and equivalents totaled $1.7 billion at the end of the second quarter.

* "We are encouraged by the signs of consumer positivity in the market; however, we remain mindful of the significant supply chain challenges that we expect to continue to impact the sector," said CEO Jochen Zeitz.

* Outlook: The company sees 2021 Financial Services segment operating income growth of 75% to 85%, up from the prior outlook of 50% to 60%.

* It still expects Motorcycles segment revenue growth to be 30% to 35%.

* Price action: HOG shares are trading higher by 2.81% at $45.03 in premarket on the last check Wednesday.