Motorcycle maker Harley-Davidson, Inc. (
) on Tuesday posted a 106% gain in third quarter earnings, beating
analyst estimates, but revenue missed and it lowered its gross
margin forecast for the year, sending its shares plummeting in
The Milwaukee-based company reported third quarter net income of
$183.6 million, or 78 cents per share, compared with $88.8 million,
or 38 cents per share, in the year-ago period.
Revenue rose 13% from last year to $1.23 billion.
On average, Wall Street analysts expected a smaller profit of 76
cents per share, albeit on higher revenue of $1.3 billion.
Looking ahead, the company confirmed its previous forecast to
ship 45,500 to 52,000 motorcycles in the fourth quarter, but
lowered its gross margin estimate to a range of 33.5% to 34.5%,
down from a prior view of 34% to 35%.
Harley-Davidson shares fell $2.21, or -5.9%, in premarket
The Bottom Line
Shares of Harley-Davidson (
) have a 1.34% dividend yield, based on last night's closing stock
price of $37.21. The stock has technical support in the $32-$34
price area. If the shares can firm up, we see overhead resistance
around the $38-$42 price levels.
Harley-Davidson, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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