Harley-Davidson (NYSE: HOG) did not have a great third quarter. If you check out the motorcycle-maker's press release, you'll see that management puts all the bad data right in the lead paragraph, with no spin whatsoever. Revenues: down almost 8% to $1.4 billion. Net income on a dollar basis: down 37% to about $167 million. The bottom line on a diluted per-share basis: down close to 34%, coming in at $0.71. Down, down, down.
And is it surprising? No. Consumers aren't really looking for that second chopper these days, I don't think. Although Harley-Davidson is built to leverage the midlife crisis that many men go through when they reach middle age, I doubt that the crisis many middle-aged men are going through currently is purely life-related. I'd be willing to bet it is a crisis based on a hellishly large loss of confidence in the security of their golden years fueled by the declining total value of their retirement accounts. In a world where companies like Ford (NYSE: F) and General Motors (NYSE: GM) are having a hard time moving inventory, you can bet that it's not a walk in the park for a manufacturer of motorcycles.
Is there anything positive in the release for shareholders? Well, the international markets saw double-digit growth. And management did repurchase 2.5 million shares during the reporting period. However, it should be noted that cash was used for operations for the nine-month period instead of being generated from them. No comfort there. Plus, the gross margin took a depressing dip. Oh, and one more bit of bad news to the story: according to this source, Harley-Davidson missed estimates by $0.08. Nope, this is not the stock you should own if you don't already own it. Those who do already count the company as part of their portfolio probably will be okay over the long-term. For now, though, the fact that Harley-Davidson's shares are near a 52-week low does absolutely nothing for me. I wouldn't be surprised to see them hit a new 52-week low.
Disclosure: I don't own any company mentioned; positions can change at any time.
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Reader Comments (Page 1 of 1)
10-19-2008 @ 2:58AM
Used Davidson said...
yes i like harleydavidsons, and i have a sharing photo videos and content on : http://harleydavidsons.flixya.com
12-03-2008 @ 11:42PM
Neil said...
To: ALL AMERICAN'S
It is inportant for each of us to contact our Congressmen & women TODAY and tell them -
DO NOT US OUR TAX DOLLARS TO BAIL OUT AMERICAN CAR MAKERS!!
They need to go reorganize like any other busineses.
They MUST CUT THE OUTRAGIOUS WHITE COLLAR & UNION WAGES!!!
UNIONS ARE DESTROYING AMERICA" ability to compete in the golbal markets!!!
IT IS NOW OR NEVER - AMERICA