Market Overview

Wedbush: Harley-Davidson Lowered Guidance On Weakening International Demand


Harley-Davidson Inc (NYSE: HOG) reported disappointing second-quarter EPS and, more importantly, faced a significant decline in international demand, despite major investments in overseas dealers, according to Wedbush.

The Analyst

Wedbush’s James Hardiman maintained a Neutral rating on Harley-Davidson with a price target of $35.

The Thesis

Harley-Davidson posted GAAP EPS at $1.23. Although this came in modestly higher than the Street’s expectation of $1.20, it was 7 cents lower than Wedbush’s estimate of $1.30.

The company’s domestic retail sales declined by a worse-than-anticipated 8%. This was “particularly disappointing” since there had been signs of growth in March, Hardiman commented.

He added, however, that the “bigger disappointment” was in the international market, with sales down 9%. Sales in both Europe and Canada declined 14% in the quarter.

Harley-Davidson lowered its 2019 shipment guidance to a range of -5% to -7% versus its previous projection of -3% to -5%. The GAAP operating margin guidance was also reduced to 6%-7%, from 8%-9%.

The analyst reduced the 2019 non-GAAP estimate by 45 cents and the GAAP estimate by 38 cents, reflecting the effects of tariffs and restructuring costs.

Price Action

Shares of Harley-Davidson declined more than 3.8% to $35.07 at time of publishing on Wednesday morning.

Related Links:

Harley-Davidson Reports Mixed Q2 Earnings

Analyst Concerned About Harley's International Business

Latest Ratings for HOG

Nov 2020UBSDowngradesBuyNeutral
Oct 2020BMO CapitalMaintainsOutperform
Oct 2020StifelMaintainsHold

View More Analyst Ratings for HOG
View the Latest Analyst Ratings


Related Articles (HOG)

View Comments and Join the Discussion!

Posted-In: James Hardiman WedbushAnalyst Color Reiteration Analyst Ratings

Latest Ratings

TSLAJP MorganMaintains125.0
INTCTruist SecuritiesMaintains64.0
FBTruist SecuritiesMaintains320.0
AAPLCowen & Co.Maintains153.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at