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(Reuters) – Harley-Davidson Inc (NYSE:HOG) reported higher-than-expected quarterly profit on Thursday as a boost in bike sales, coupled with strong pricing dynamics, allowed the motorcycle maker to navigate cost inflation and deliver on pent-up demand.
Shares in the U.S. company jumped 9% in pre-market trade after the results.
Harley-Davidson said it expects revenue from its motorcycle business to grow in 2023. The manufacturer has either beaten or met Wall Street earnings forecasts for the previous seven quarters, benefiting from strong demand for leisure purchases despite high inflation dampening consumer confidence.
Consumer interest in outdoor recreational activities has been a boon to the bike manufacturer, even as it faces challenges such as lingering semiconductor shortages and elevated shipping costs.
The Milwaukee-based company posted a 12% jump in fourth-quarter revenue, topping expectations in a Refinitiv survey of analysts.
A combination of price increases and surcharges for its popular cruisers and longer-range Grand American Touring bikes padded the bike maker’s bottom line given high raw material and shipping costs.
Global motorcycle shipments rose to 34,000 from 28,900 a year ago.
Sales of the company’s motorcycles and related products rose 9% to $4.89 billion in 2022. The company expects revenue from that segment, its main business, to grow 4% to 7% in 2023.
The company’s net profit rose to $39.7 million, or 28 cents per share, in the quarter ended Dec. 31, from $21.6 million, or 14 cents per share, a year earlier.
Shares in Harley-Davidson have risen more than 30% in the past 12 months.
(This story has been corrected to read thousands, not millions, in paragraph 7)
