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This is Why Harley-Davidson (HOG) Stock is Falling After Earnings
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On Tuesday, shares of American motorcycle manufacturer Harley-Davidson (HOG - Free Report) are falling, down about 4% in morning trading after the company reported first-quarter fiscal 2017 financial results.
Diluted earnings of $1.05 per share beat the Zacks Consensus Estimate of 99 cents per share, decreasing 22.8% year-over-year. Total revenues of $1.3 billion matched our consensus estimate but fell 15.7% year-over-year. Domestic sales dropped 5.7% in Q1, reflecting weak demand for motorcycles across the industry, while sales in its largest international segments decreased year-over-year as well.
Sales in Europe, the Middle East, and Africa fell 0.4%, and its Asia Pacific region reported a 9.3% decline; revenues in Harley-Davidson’s Latin American segment jumped 24.2% year-over-year.
What’s really hurting the Milwaukee-based motorcycle dealer, however, is its struggle to gain new customers domestically and abroad. In Q1, motorcycle shipments fell 14.7 percent to 70,831, and Harley-Davidson is only forecasting motorcycle shipments of 80,000 to 85,000 for the current quarter, below the FactSet consensus of 86,160.
Demand for Harley-Davidson’s motorcycles continues to slowdown as its core baby boomer customer base grows older, in addition to intense competition from Indian brand bike maker Polaris Industries and Japan’s Honda Motor Co. (HMC - Free Report) .
HOG is currently a #3 (Hold) on the Zacks Rank, and has gained almost 28% over the past one year.
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This is Why Harley-Davidson (HOG) Stock is Falling After Earnings
On Tuesday, shares of American motorcycle manufacturer Harley-Davidson (HOG - Free Report) are falling, down about 4% in morning trading after the company reported first-quarter fiscal 2017 financial results.
Diluted earnings of $1.05 per share beat the Zacks Consensus Estimate of 99 cents per share, decreasing 22.8% year-over-year. Total revenues of $1.3 billion matched our consensus estimate but fell 15.7% year-over-year. Domestic sales dropped 5.7% in Q1, reflecting weak demand for motorcycles across the industry, while sales in its largest international segments decreased year-over-year as well.
Sales in Europe, the Middle East, and Africa fell 0.4%, and its Asia Pacific region reported a 9.3% decline; revenues in Harley-Davidson’s Latin American segment jumped 24.2% year-over-year.
What’s really hurting the Milwaukee-based motorcycle dealer, however, is its struggle to gain new customers domestically and abroad. In Q1, motorcycle shipments fell 14.7 percent to 70,831, and Harley-Davidson is only forecasting motorcycle shipments of 80,000 to 85,000 for the current quarter, below the FactSet consensus of 86,160.
Demand for Harley-Davidson’s motorcycles continues to slowdown as its core baby boomer customer base grows older, in addition to intense competition from Indian brand bike maker Polaris Industries and Japan’s Honda Motor Co. (HMC - Free Report) .
HOG is currently a #3 (Hold) on the Zacks Rank, and has gained almost 28% over the past one year.
Sell These Stocks. Now.
Just released: today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>