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Why Harley-Davidson Stock Fell 2% after Its Q1 Earnings Report

Jitendra Parashar - Author

Jul. 24 2019, Updated 11:52 a.m. ET

Harley-Davidson’s first-quarter earnings

Heavyweight motorcycle maker Harley-Davidson (HOG) released its earnings results for the first quarter of 2019 on April 23. In the quarter, the company’s adjusted EPS stood at $0.80, down 22.3% from its adjusted EPS of $1.03 in the first quarter of 2018.

Nonetheless, Harley’s first-quarter EPS were much better than Wall Street analysts’ consensus estimate of $0.65. Before we dig deeper into Harley-Davidson’s first-quarter report, let’s take a quick look at investors’ reactions to its performance.

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Stock price inched up

On the day of HOG’s first-quarter earnings release, its stock fell ~2.0% to close at $38.92 against the 0.9% gain in the S&P 500 Index during the session. Despite its better-than-expected first-quarter earnings, the company’s weakening retail sales, lower shipments, and weak operating margin may have driven investors’ pessimism.

During its first-quarter earnings event, Harley’s management maintained the dismal 2019 shipment, gross margin, operating margin, and capex guidances it had originally provided in January 2019. On the bright side, the company expects its shipments to be between 65,500 and 70,500 motorcycle units in the second quarter, a rise of ~11.2% to 19.7% sequentially.

This week, automakers Tesla (TSLA) and Ford Motor Company (F) are also set to release their earnings results on April 24 and April 25, respectively. General Motors (GM) and Italian-American automaker Fiat Chrysler Automobiles (FCAU) are scheduled to announce their first-quarter results on April 30 and May 3, respectively.

Visit Market Realist’s Autos page to stay updated on analysts’ estimates for auto companies’ first-quarter earnings.


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