Harley Davidson Plans Job Cuts In Fourth Quarter

Harley-Davidson Inc. said its third-quarter earnings fell as tepid demand continued to weigh on the motorcycle manufacturer's top line.

On the company's financial health, Harley-Davidson Inc reported $1.55 EPS for the quarter, beating the analyst consensus estimate by $ 0.02 according to the earnings call on Jul 28, 2016. Harley-Davidson's sales in the US fell 7.1% to 45,469 motorcycles. Harley-Davidson had a return on equity of 34.33% and a net margin of 13.23%. While it might make sense to maintain a premium pricing strategy to maintain the brand image of a bike as famous as the Harley-Davidson, the fact is that the market is not ready to accept bikes at these prices. As for earnings per share, the company reported that earnings per share in the third quarter dropped to $0.64 per share from $0.69 previous year. Harley-Davidson's dividend payout ratio is now 36.65%. BMO Capital Markets reissued an "outperform" rating and set a $66.00 price objective on shares of Harley-Davidson in a report on Friday, September 9th.

Harley-Davidson Inc closed down -0.59 points or -1.17% at $49.83 with 21,93,700 shares getting traded on Friday. The FactSet consensus was for EPS of 64 cents and revenue of $1.09 billion. Harley-Davidson has a one year low of $36.36 and a one year high of $57.33. Envestnet Asset Management Inc. boosted its position in shares of Harley-Davidson by 6.4% in the first quarter.

The motorcycle maker posted revenue of $1.09 billion in the period, falling short of Street forecasts.

The results were largely what was predicted by analysts for the quarter.

The firm also recently declared a quarterly dividend, which was paid on Friday, September 23rd. MA increased its position in Harley-Davidson by 46.3% in the second quarter.

Harley-Davidson had cash and cash equivalents of $790.3 million as of Sep 25, 2016, compared with $1.37 billion as of Sep 27, 2015.

Harley-Davidson Inc.is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS).

TheStreet Ratings rated this stock as a "buy" with a ratings score of B-. The Company operates in two segments: the Motorcycles & Related Products (Motorcycles) segment and the Financial Services segment.

Revenues from Parts and Accessories declined 8.3% to $231.3 million, while revenues from General Merchandise - which includes MotorClothes apparel and accessories - fell 5.4% to $65.3 million.

  • Anthony Vega