Harley-Davidson (HOG) shares are roaring ahead in pre-market trading, soaring 5.44% after the iconic motorcycle manufacturer reported first-quarter earnings that exceeded Wall Street expectations. The company's strong financial performance comes despite facing significant headwinds in the global motorcycle market.

For the first quarter of 2025, Harley-Davidson reported earnings per share of $1.07, significantly surpassing the analyst consensus estimate of $0.78. Revenue also beat expectations, coming in at $1.33 billion compared to the forecasted $1.10 billion. This impressive financial performance in the face of challenging market conditions appears to be driving investor optimism.

However, the company's results also revealed ongoing challenges. Global retail motorcycle sales declined 21% year-over-year, with a particularly steep 24% drop in the crucial U.S. market. Harley-Davidson cited a volatile macroeconomic environment, overall consumer uncertainty, and high interest rates as factors impacting sales. In response to these headwinds, the company has withdrawn its full-year 2025 financial outlook, citing uncertainties related to global tariffs and economic conditions.

Jochen Zeitz, Chairman, President and CEO of Harley-Davidson, emphasized the company's focus on navigating these challenges through cost control measures, supply chain mitigation, and increased marketing initiatives. The company is also evaluating all options for its electric motorcycle brand LiveWire, including potential third-party investments. Despite the hurdles, Harley-Davidson's ability to exceed earnings expectations suggests its strategic initiatives may be gaining traction, fueling the stock's pre-market rally.