Key Highlights
- LVWR shares skyrocketed 58.44% to $1.22 in extended trading following quarterly earnings release
- Second-quarter revenue increased 55% from prior year to reach $9.1 million
- Company narrowed net loss to $18.2 million versus $18.8 million year-over-year
- Dust Motorcycles acquisition finalized in May, expanding off-road capabilities
- Shares ended regular trading session at $0.77, declining 15.29% prior to after-hours rally
Shares of LiveWire Group experienced a remarkable rebound during after-hours trading Thursday, surging 58.44% to reach $1.22 following the electric motorcycle manufacturer’s second-quarter earnings report that showcased a substantial 55% increase in consolidated revenue.
The dramatic after-hours movement stood in sharp contrast to the regular session, where shares had declined 15.29% to close at $0.77.
For the three-month period ending June 30, the company reported total revenue of $9.1 million, representing a significant increase from the $5.9 million recorded during the comparable quarter last year. This revenue expansion was attributed to increased unit sales across LiveWire’s operational segments.
The company manages two distinct business units: its Electric Motorcycles division and STACYC, which manufactures electric balance bikes designed for young riders.
On the bottom line, LiveWire’s net loss showed modest improvement, decreasing to $18.2 million from $18.8 million in the year-ago period. The company’s adjusted EBITDA loss similarly improved, registering at $15.1 million versus $15.7 million in the prior-year quarter.
Chief Executive Officer Karim Donnez characterized the quarter as “an important step forward in the execution of our strategic growth plan.”
Strategic Expansion Through Dust Acquisition and S4 Honcho Platform
The company finalized its acquisition of Dust Motorcycles in May, bringing an electric off-road motorcycle manufacturer into the LiveWire portfolio. This strategic move positions the company to capitalize on expanding opportunities in the off-road motorcycle segment.
Additionally, LiveWire initiated manufacturing operations for its S4 Honcho platform, featuring lightweight electric mini-motorcycles with performance equivalent to 125cc traditional models. The product line encompasses both the S4 Honcho Trail and S4 Honcho Street variants, designed to appeal to consumers seeking more affordable entry points into electric motorcycles.
Management confirmed that full-year guidance remains intact following the second-quarter results.
Market Performance and Wall Street Perspective
Notwithstanding the after-hours spike, LVWR shares remain significantly underwater on a trailing twelve-month basis, declining 82.85% over the past year. The stock’s 52-week peak of $6.44 remains far removed from current trading levels.
The company’s market capitalization ranges between approximately $157 million and $185 million depending on the trading session. Current prices remain substantially below both the 50-day moving average of $1.13 and the 200-day moving average of $1.76.
Weiss Ratings maintained its “sell (e+)” rating on the stock as of July 17th. The consensus analyst rating tracked by MarketBeat also reflects a Sell recommendation.
Several institutional investors have expanded their positions recently, with Vanguard increasing its holdings by 109.4% and Geode Capital Management boosting its stake by 102% in recent reporting periods.
Harley-Davidson continues to hold majority ownership and maintains controlling interest in LiveWire.
Quarterly earnings per share came in at -$0.09, accompanied by a negative net margin of 263.77% and negative return on equity of 137.09%.
The Relative Strength Index (RSI) for LVWR currently registers at 40.37, with the stock trading near its 52-week low of $0.65.
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