What happened 

Shares of motorcycle manufacturer Harley-Davidson Inc. (NYSE:HOG) jumped as much as 7.3% in early trading Tuesday after reporting second-quarter 2018 results. As of 10:45 a.m. EDT, shares were still up 7% and seemed to be gaining momentum. 

So what

Revenue fell 3.3% in the quarter to $1.53 billion, and net income was down 6.4% to $242.3 million, or $1.45 per share. Results were well above the $1.41 billion in revenue and $1.34 per share in earnings that analysts were expecting. 

Two people riding motorcycles on the highway.

Image source: Getty Images.

Motorcycle shipment revenue remained flat with 231,000 to 236,000 units in 2018, which should be seen as a positive given recent tariffs in both the U.S. and Europe. Aluminum and steel tariffs implemented by President Trump are expected to cost the company $15 million to $20 million, and European tariffs on motorcycles are expected to cost $30 million to $35 million. 

Now what

Results weren't outstanding, but investors were pricing in a poor start to the year after tariffs were announced. Management has also kept full-year volume outlook similar, despite tariffs, which tells me it isn't seeing sales slow in Europe as costs rise. There are still a lot of unknowns for Harley-Davidson as the global trade war heats up. But for now, investors don't think the impact will be as bad as feared. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.