Shares of Harley-Davidson (HOG) Rev Down Following Q3 Results
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Price: $37.94 -2.24%
EPS Growth %: -26.5%
Financial Fact:
Operating income: 412.32M
Today's EPS Names:
CPSS, HARL, MCET, More
EPS Growth %: -26.5%
Financial Fact:
Operating income: 412.32M
Today's EPS Names:
CPSS, HARL, MCET, More
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Harley-Davidson, Inc. (NYSE: HOG) experienced strong improvements in earnings and dealer retail sales during the third quarter of 2011. Still, investors are selling Tuesday morning. The stock last traded at $36.50, down 1.9 percent from Monday's closing price.
Income from continuing operations in the quarter rose 95.9 percent to $183.6 million, or $0.78 per share, compared to income of $93.7 million, or $0.40 per share from continuing operations a year ago. The company topped the Street’s estimate of $0.76.
Third-quarter operating income from Motorcycles and Related Products grew 78.0 percent on higher shipment volume and operating margin improvement, while operating income from Financial Services grew 21.9 percent on continued improvement in credit performance.
Revenue from Motorcycles during the third quarter was $922.3 million, up 15.5 percent compared to the year-ago period. Revenue from Motorcycle Parts and Accessories totaled $235.7 million during the quarter, up 7.6 percent, while sales from General Merchandise were $69.3 million, up 8.2 percent compared to the year-ago period. Sales for the quarter totaled $1.23 billion, up roughly 13 percent from last year, but below the Street’s estimate of $1.29 billion.
Gross margin was 33.7 percent in the third quarter of 2011, compared to 34.9 percent in the third quarter of 2010. Third-quarter operating margin was 14.7 percent, compared to 9.3 percent in the third quarter of 2010.
Globally, Harley-Davidson sold 5.1 percent more new motorcycle in the third quarter compared to last year's third quarter. The total was 61,838 units. Dealers sold 42,640 motorcycles in the U.S., a 5.4 percent increase, and 19,198 motorcycles internationally, a 4.4 percent increase.
Cash and marketable securities totaled $1.61 billion at the end of the quarter, compared to $1.55 billion at the end of last year's third quarter. The company also repurchased 2.5 million shares during the quarter for a total of $90.8 million.
Looking ahead Harley-Davidson expects to ship 228,000 to 235,000 Harley-Davidson motorcycles to dealers and distributors worldwide in 2011, including 45,500 to 52,500 motorcycles in the fourth quarter, inline with previous forecasts.
For the full year, Harley-Davidson now expects gross margin to be between 33.5 percent and 34.5 percent, compared to previous guidance of 34.0 percent to 35.0 percent. The company continues to expect capital expenditures of between $210 million and $230 million, which includes $70 million to $85 million to support restructuring activities.
Income from continuing operations in the quarter rose 95.9 percent to $183.6 million, or $0.78 per share, compared to income of $93.7 million, or $0.40 per share from continuing operations a year ago. The company topped the Street’s estimate of $0.76.
Third-quarter operating income from Motorcycles and Related Products grew 78.0 percent on higher shipment volume and operating margin improvement, while operating income from Financial Services grew 21.9 percent on continued improvement in credit performance.
Revenue from Motorcycles during the third quarter was $922.3 million, up 15.5 percent compared to the year-ago period. Revenue from Motorcycle Parts and Accessories totaled $235.7 million during the quarter, up 7.6 percent, while sales from General Merchandise were $69.3 million, up 8.2 percent compared to the year-ago period. Sales for the quarter totaled $1.23 billion, up roughly 13 percent from last year, but below the Street’s estimate of $1.29 billion.
Gross margin was 33.7 percent in the third quarter of 2011, compared to 34.9 percent in the third quarter of 2010. Third-quarter operating margin was 14.7 percent, compared to 9.3 percent in the third quarter of 2010.
Globally, Harley-Davidson sold 5.1 percent more new motorcycle in the third quarter compared to last year's third quarter. The total was 61,838 units. Dealers sold 42,640 motorcycles in the U.S., a 5.4 percent increase, and 19,198 motorcycles internationally, a 4.4 percent increase.
Cash and marketable securities totaled $1.61 billion at the end of the quarter, compared to $1.55 billion at the end of last year's third quarter. The company also repurchased 2.5 million shares during the quarter for a total of $90.8 million.
Looking ahead Harley-Davidson expects to ship 228,000 to 235,000 Harley-Davidson motorcycles to dealers and distributors worldwide in 2011, including 45,500 to 52,500 motorcycles in the fourth quarter, inline with previous forecasts.
For the full year, Harley-Davidson now expects gross margin to be between 33.5 percent and 34.5 percent, compared to previous guidance of 34.0 percent to 35.0 percent. The company continues to expect capital expenditures of between $210 million and $230 million, which includes $70 million to $85 million to support restructuring activities.
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