Harley-Davidson Laps Q2 Estimates; Shares Fall on Production Cuts

Shares of iconic motorcycle maker Harley-Davidson (NYSE: HOG  ) fell in pre-market trading this morning, following the release of second-quarter results that included management's expressing disappointment in sales figures. Harley's second-quarter sales rose 12% year-over-year to $2.0 billion. GAAP earnings jumped 34% higher, landing at $1.62 per share.

Analysts would have settled for earnings of $1.46 per share on $1.8 billion in sales. Harley cruised past these Wall Street expectations.

The company shipped 92,217 new motorcycles in the quarter, up 9% from 84,606 bikes shipped in the year-ago quarter. Harley dealers worldwide sold 90,218 motorcycles, about even with the second quarter of 2013.

Management expressed disappointment with second-quarter sales figures, pointing to poor weather in strategically important parts of the U.S. market. Moreover, Sportster motorcycle sales were soft as customers expected the release of the new Street product line.

In order to keep production in line with demonstrated demand trends, Harley slashed its full-year unit growth estimates from circa 8% to roughly 4.5%. Through the first six months of 2014, shipments increased 8.2% while worldwide sales to customers grew by 2.2%.

In prepared remarks, Harley CEO Keith Wandell expressed confidence in his company's long-term prospects. "We believe the underlying demand fundamentals of the business remain intact," Wandell said. "We continue to see a strong response to the new Rushmore models as well as great interest in the Harley-Davidson Street 750 and 500, which began to hit dealer showrooms in late June."

Warren Buffett's worst auto-nightmare
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An industry executive called the technology "fantastic." The beauty for investors is that there is an easy way to ride this megatrend. Click here to access our exclusive report on this stock.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3038186, ~/Articles/ArticleHandler.aspx, 9/21/2014 4:15:56 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement