Key Highlights
- LVWR shares skyrocketed 58.44% to $1.22 in after-hours trading following Q2 earnings release
- Total consolidated revenue increased 55% year-over-year, reaching $9.1 million
- Net loss improved to $18.2 million compared to $18.8 million in the prior-year quarter
- Company finalized Dust Motorcycles acquisition in May 2024
- Regular trading session ended at $0.77, reflecting a 15.29% decline before the dramatic after-hours rally
Electric motorcycle manufacturer LiveWire Group experienced a remarkable after-hours rally on Thursday, with shares surging 58.44% to reach $1.22 following the release of second-quarter financial results that demonstrated significant revenue expansion.
The impressive after-hours gain represented a sharp reversal from the regular session, where the stock had declined 15.29% to close at $0.77.
For the three months ending June 30, the company reported total revenue of $9.1 million, marking a substantial increase from the $5.9 million recorded during the comparable quarter last year. This growth was attributed to increased unit deliveries across both of the company’s operating divisions.
The company manages two distinct business units: its flagship Electric Motorcycles division and STACYC, which specializes in electric balance bikes designed for young riders.
The quarterly net loss showed modest improvement, decreasing to $18.2 million from $18.8 million in the year-ago period. Similarly, the adjusted EBITDA loss narrowed to $15.1 million from $15.7 million recorded in the previous year’s second 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 Deal and S4 Honcho Platform
The company finalized its strategic acquisition of Dust Motorcycles in May, bringing an electric off-road motorcycle manufacturer into its portfolio. This transaction positions LiveWire to capitalize on expanding demand in the off-road electric motorcycle segment.
Additionally, LiveWire initiated manufacturing of its new S4 Honcho platform, featuring lightweight electric mini-motorcycles equivalent to 125cc gas-powered bikes. The product family encompasses both the S4 Honcho Trail and S4 Honcho Street variants, designed to appeal to budget-conscious consumers seeking entry-level electric options.
Management confirmed that full-year financial projections remain intact following the second-quarter performance.
Market Performance and Wall Street Outlook
While the after-hours spike provided a temporary boost, the stock has experienced severe pressure over the trailing twelve-month period, plummeting 82.85%. The 52-week peak of $6.44 remains far above current trading levels.
The company’s market capitalization ranges between approximately $157 million and $185 million based on session timing. Current prices remain significantly 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+)” recommendation on July 17th. The consensus analyst rating on MarketBeat also indicates a Sell stance.
However, institutional ownership has shown recent growth, with Vanguard expanding its holdings by 109.4% and Geode Capital Management increasing its position by 102% in recent reporting periods.
Harley-Davidson continues to hold majority ownership and 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 for LVWR registers at 40.37, with the stock trading near its 52-week low of $0.65.
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