Citigroup Comments on Harley-Davidson's 3Q EPS Miss

Citigroup has published a research report on Harley-Davidson (NYSE: HOG) after the company reported 3Q earnings that missed consensus estimates.

In the report, Citigroup writes, "EPS was reported at 78c vs. FC at 76c. However, this includes an estimated 14c favorable impact from taxes, therefore, we est EPS was 64c excl the tax benefit. We estimate a 3c negative impact from restructuring charges (vs. our est of 7c). Sales were $1.23bn vs. FC of $1.29bn. We believe the miss was primarily due to a 120bps YOY decline in GM as well as lower sales."

Citigroup maintains its Neutral rating and $37 price target on Harley-Davidson, which is currently trading down $2.93 from its $37.21 closing price yesterday.