Harley-Davidson’s Q3 Surges, Beating View, but Revenue Misses and Gross Margins Cut (HOG)

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Motorcycle maker Harley-Davidson, Inc. ( HOG ) 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 premarket trading.

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 trading Tuesday.

The Bottom Line
Shares of Harley-Davidson ( HOG ) 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. ( HOG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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