I guess you could say that shareholders of Harley-Davidson (HOG) aren't in hog heaven. The motorcycle magnate announced solid third-quarter earnings results, but it disappointed the Street with its motorcycle sales.

Let's start with the good news. Harley-Davidson reported third-quarter net income of 38 cents per share ($88.8 million) or 40 cents per continuing share, far better than last year's same-quarter earnings of 11 cents per share. What's more, these results topped the consensus estimate of 35 cents per share. The company was even able to overcome poor quarterly sales because of it financial services division and cost-cutting efforts.

Continue reading Harley-Davidson Sales Forecast Disappoints the Street

Harley-Davidson Sales Forecast Disappoints the Street originally appeared on BloggingStocks on Tue, 19 Oct 2010 12:20:00 EST. Please see our terms for use of feeds.

Imagine a manufacturing and wholesale distribution company whose fortunes are dependent on higher-income customers with discretionary income, readily available access to credit and an optimistic view to the future. Now add a financial services component that extends credit to the company's dealers and customers.

Harley-Davidson (NYSE: HOG) is just such a company.

Harley is a classic case of a company that prospered immensely from the combination of an aging baby boomer population and a massive increase in the appearance of wealth resulting from unprecedented increases in home values and a stock market that exploded to new heights during the last 10 years.

Now that both of these bubbles have burst, HOG is feeling the impact of a recalcitrant consumer and mounting problems with the loan portfolio of its financial arm, Harley-Davidson Financial Services (HDFS).

As an American icon, Harley Davidson's line of heavyweight touring, custom and performance motorcycles is the most visible (and audible) symbol of American self-indulgence.

Continue reading Will Harley-Davidson (HOG) ride again?

Will Harley-Davidson (HOG) ride again? originally appeared on BloggingStocks on Wed, 21 Jan 2009 12:31:00 EST. Please see our terms for use of feeds.

Gallery: Time for a HOG?

Harley Davidson museum aims to be one big biker rally originally appeared on BloggingStocks on Wed, 16 Jul 2008 18:38:00 EST. Please see our terms for use of feeds.

Harley-Davidson (NYSE: HOG) announced today that August sales sucked the tailpipe, and the rest of the year looks similarly grim. Third quarter shipments will fall several thousand units short of expectations, and it projects 2007 total shipments to finish at 328-332,000, down over 10,000 units over 2006. It's new projection for 2007 EPS is $3.69-$3.77, down from $3.93 in 2006.

The market reacted sharply to the news and the stock is down almost 9% in early trading. Since April, the stock has dropped from almost $66 a share to under $50.

The company points to dropping demand and a promotion-heavy July to explain the shortfall. I think Harley-Davidson is caught in a particularly awkward spot in this economy. As the number of Harleys on the road grew, the resale price has fallen, which creates more of a barrier for riders interested in trading up. About 35% of purchases financed by Harley-Davidson Financial Services were subprime, and the troubles in this market are bound to be reflected in sales declines, much as they have in the auto sector. Growing unemployment figures could also have an impact on sales.

The company entered 2007 with an overabundance of inventory in dealerships, and the July incentives used to clear out these models would have made 2008 models seem more expensive by comparison.

The company further cautioned that 2008 could be another slow year for bike sales, projecting moderate revenue growth and EPS up 4-7%.

I'd keep an eye on international growth, to see if the company can make enough inroads in foreign markets to absorb some of the excess capacity. Domestically, Harley-Davidson looks to be running into some rough road ahead.

Harley - Davidson (HOG) sales sputtered in August, lowering expectations originally appeared on BloggingStocks on Fri, 07 Sep 2007 10:55:00 EST. Please see our terms for use of feeds.

Continue reading Harley-Davidson earnings: Struggles through another quarter

Harley-Davidson earnings: Struggles through another quarter originally appeared on BloggingStocks on Thu, 19 Jul 2007 17:30:00 EST. Please see our terms for use of feeds.

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Analyst upgrades 7-09-07: HD, HOG, TEVA and WAG originally appeared on BloggingStocks on Mon, 09 Jul 2007 10:34:00 EST. Please see our terms for use of feeds.

Gallery: Harley-Davidson style

Harley-Davidson- the quintessential brand originally appeared on BloggingStocks on Thu, 28 Jun 2007 21:35:00 EST. Please see our terms for use of feeds.

Honda has issued a strongly worded denial of such interest, and I believe it. Harley and Honda would be a bad fit for several reasons.

Culture: Harley's success is not mechanical, but cultural. The cachet surrounding the brand depends on its individuality, and the brand would not survive the subordination of it within a larger entity. Most Harley riders treasure the knowledge that the company is still American owned, at least in part, and among those in control are members of the original Davidson family such as Willie G.

Continue reading Honda buyout of Harley-Davidson -- does it pass the sniff test?

Honda buyout of Harley-Davidson -- does it pass the sniff test? originally appeared on BloggingStocks on Mon, 25 Jun 2007 10:22:00 EST. Please see our terms for use of feeds.