Shares of Harley-Davidson (HOG - Free Report) fell as low as 7% before recovering on Thursday on news that the company agreed to pay a $15 million settlement with the Environmental Protection Agency (EPA). The EPA had filed a complaint over the company’s “super tuners” which bolstered power but released harmful emissions.
Based in Milwaukee, WI, Harley-Davidson is an American motorcycle manufacturer. According to the EPA, the company sold about 340,000 of the tuners, and more than 12,000 motorcycles of various models with the tuners pre-installed.
Of the $15 million settlement, $12 million will be paid as civil penalty while the other $3 million will be spent on a project to mitigate air pollution by replacing conventional woodstoves with cleaner-burning models.
“This settlement is not an admission of liability but instead represents a good faith compromise with the EPA on areas of law we interpret differently, particularly EPA's assertion that it is illegal for anyone to modify a certified vehicle even if it will be used solely for off-road/closed-course competition,” said Ed Moreland, Harley-Davidson's Government Affairs Director.
As per the deal, the company will buy back all of the devices and discontinue future sales of the product.
Shares of Harley-Davidson are up 19.6% year-to-date, but the company has seen numerous downward earnings estimate revisions for the foreseeable future.
Current quarter estimates stand at $0.65 in earnings per share, down from the $0.70 estimate of 60 days ago. Current fiscal-year estimates have slipped nine cents to $3.88 as well.
Harley-Davidson currently sits at a Zacks Rank #3 (Hold).
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Shares of Harley-Davidson (HOG - Free Report) fell as low as 7% before recovering on Thursday on news that the company agreed to pay a $15 million settlement with the Environmental Protection Agency (EPA). The EPA had filed a complaint over the company’s “super tuners” which bolstered power but released harmful emissions.
Based in Milwaukee, WI, Harley-Davidson is an American motorcycle manufacturer. According to the EPA, the company sold about 340,000 of the tuners, and more than 12,000 motorcycles of various models with the tuners pre-installed.
Of the $15 million settlement, $12 million will be paid as civil penalty while the other $3 million will be spent on a project to mitigate air pollution by replacing conventional woodstoves with cleaner-burning models.
“This settlement is not an admission of liability but instead represents a good faith compromise with the EPA on areas of law we interpret differently, particularly EPA's assertion that it is illegal for anyone to modify a certified vehicle even if it will be used solely for off-road/closed-course competition,” said Ed Moreland, Harley-Davidson's Government Affairs Director.
As per the deal, the company will buy back all of the devices and discontinue future sales of the product.
Shares of Harley-Davidson are up 19.6% year-to-date, but the company has seen numerous downward earnings estimate revisions for the foreseeable future.
Current quarter estimates stand at $0.65 in earnings per share, down from the $0.70 estimate of 60 days ago. Current fiscal-year estimates have slipped nine cents to $3.88 as well.
Harley-Davidson currently sits at a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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