Harley has doubled down on some of its most expensive motorcycles, including three-wheel bikes, that have higher profit margins.

Higher demand for its most expensive touring and cruiser motorcycles helped Harley-Davidson Inc. report a 40% revenue increase Tuesday.

For the three-month period ended Dec. 31, Harley’s revenue rose to $1.02 billion from $725 million a year earlier. The company’s profit climbed to $21.6 million, or 14 cents per share, from a loss of $96.4 million, or 63 cents per share, in the same quarter a year earlier. 

Analysts had expected Harley to post a loss in the recent quarter. Following the earnings announcement, the company’s share price closed at $41.73, up more than 15%.  

Harley’s results were “much better than expected,” analyst Joe Altobello with Raymond James said in a note. 

For the full year 2022, the company now said it expects revenue growth of 5% to 10% in its motorcycle division, but that it continues to be dogged by supply chain issues that have constrained manufacturing.

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