Harley-Davidson shares rise after earnings and sales beat expectations
Harley-Davidson Inc. shares rose 2.2% in Tuesday premarket trading after the motorcycle company reported first-quarter earnings and sales that beat expectations. Net income totaled $174.8 million, or $1.03 per share, down from $186.4 million, or $1.05 last year. Adjusted EPS was $1.24. Revenue was $1.36 billion, up from $1.33 billion year-over-year. The FactSet consensus was for EPS of $1.01 and sales of $1.27 billion. Global retail sales fell 7.2% with international sales up 0.2% and U.S. sales down 12%. Harley-Davidson continues to expect restructuring and consolidation costs associated with the consolidation of its Kansas City, Mo. manufacturing plant into its plant in York, Pa. to be $170 million to $200 million and capital investment of about $75 million through 2019. Annual cash savings is expected to be $65 million to $75 million after 2020. Harley-Davidson continues to expect motorcycle shipments of 231,000 to 236,000 for 2018, and expects to ship 67,500 to 72,500 in the second quarter. Harley-Davidson shares are down 19.4% for the year to date while the S&P 500 index is down 0.1% for the period.