- Harley Davidson is falling after reporting earnings well under analysts’ expectations.
- The future isn’t too bright either, as the company said it expects sales to continue to decline.
- Watch the stock move in real time here.
Harley Davison shares are plummeting on Tuesday after the company reported earnings well under analysts’ expectations.
Shares are down 8.54% to $US50.57 after the company reported its fourth-quarter earnings.
The motorcycle maker reported earnings of $US0.05 vs estimates of $US0.45. Harley brought in revenue of $US1.05 billion vs estimates of $US1.01 billion and shipped about 47,200 bikes during the quarter.
The American company is facing a sharp decline in demand for its bikes. Its sales plummeted around 11% in the fourth quarter compared to the same period last year. And the hurt won’t be ending soon, according to Harley. The company guided toward a global sales decline of about 4.9% in 2018.
The company was forced to close its Milwaukee-based plant and has refocused on its York, Pennsylvania factory. The move resulted in about 260 job cuts.
Analysts are holding off on calling for the end of the company though. 15 of the 23 analysts tracked by Bloomberg rate the company a hold, and six a buy. Adam Jonas at Morgan Stanley thinks analysts are counting Harley out too early and rates the company a buy with a $US54 price target.
Harley Davidson is down 2.96% this year.