Weak demand for Harley-Davidson Inc's motorcycles in the first quarter led to lower-than-expected retail sales at its dealers, raising concerns that the company could miss its already weak shipment forecast for the year. Net income was $186.4 million, down from $250.5 million in the first quarter previous year. Gulf International Bank UK Ltd boosted its stake in shares of Harley-Davidson by 1.4% in the first quarter.
Speaking on a post-earnings conference call in January, Chief Financial Officer John Olin said Harley would focus on selling its 2016 motorcycles through the first quarter of this year. Contravisory Investment Management Inc. acquired a new stake in shares of Harley-Davidson during the first quarter worth approximately $255,000. "If it continues and Harley can't find new riders beyond this demographic group, it's a problem". Argus restated a hold rating on shares of Harley-Davidson in a research report on Friday, February 3rd. The business earned $1.11 billion during the quarter, compared to the consensus estimate of $972.47 million. Bike sales fell 5.7 percent in the crucial USA market and 4.2 percent worldwide as only Latin America - the company's smallest market - increased deliveries. For the quarter, shares have been noted at 1.79%.
Diluted earnings of $1.05 per share beat the Zacks Consensus Estimate of 99 cents per share, decreasing 22.8% year-over-year. By reviewing stock prices from the stock market history of the company and examining its analysts ratings can give an investment picture with updated information of stock which helps investors to make investing decision.
"We believe the United States industry continues to be adversely affected by soft used bike prices and weakness in the oil-dependent areas and we continue to expect the industry will remain soft for the full year", Harley's Chief Financial Officer John Olin said on a post-earnings conference call.
Several research analysts recently issued reports on HOG shares. Based on a 1 to 5 integer scale, analysts have a 2.80 recommendation on the name.
Harley-Davidson, Inc. (NYSE:HOG) closed down -0.3 points or -0.5% at $59.4 with 5 mln shares exchanging hands.
Shares of Harley-Davidson (NYSE:HOG) opened at 57.00 on Monday. Also, VP Joanne M. Bischmann sold 911 shares of the business's stock in a transaction on Tuesday, February 7th. Over the past twelve months, Harley-Davidson, Inc. Insiders sold a total of 103,960 shares of company stock valued at $5,912,378 in the last 90 days.
However, Harley-Davidson has been facing challenges from competitors, including heavy discounts. Tower Research Capital LLC TRC now owns 3,818 shares of the company's stock valued at $201,000 after buying an additional 700 shares during the last quarter. Independent Franchise Partners LLP raised its position in shares of Harley-Davidson by 1.5% in the third quarter. At the end of the first quarter, 18.0 million shares remained on a board-approved share repurchase authorization.
In the first quarter, revenue from the Motorcycles and Related Products segment was down versus the first quarter of 2016 on lower shipments.