Harley-Davidson Posts Upbeat Q1 Earnings, But Lowers Motorcycle-Shipment Forecast

Shares of

dropped more than 8 percent in pre-market trading after the company lowered its motorcycle-shipment guidance for the year. However, the company reported upbeat earnings for the first quarter. For the year, the company now projects motorcycle shipments to rise 2 percent to 4 percent, versus its prior forecast for a growth of 4 percent to 6 percent. For the second quarter, Harley-Davidson projects to ship 83,000 to 88,000 motorcycles, versus 92,217 shipped in the year-ago quarter The Milwaukee, Wisconsin-based company reported a quarterly profit of $269.9 million, or $1.27 per share, versus a year-ago profit of $265.9 million, or $1.21 per share. Its revenue slipped to $1.67 billion from $1.73 billion. However, analysts were estimating earnings of $1.25 per share on revenue of $1.58 billion. Revenue from sales of motorcycles to dealers and distributors fell to $1.26 billion from $1.31 billion, while revenue from motorcycle parts and accessories dropped to $183.9 million from $198.1 million. World-wide retail sales of new motorcycles slipped 1.3 percent in the quarter. Sales declined 0.7 percent in the U.S., while international sales slipped 2.4 percent. At the end of the first quarter, cash and marketable securities totaled $1.23 billion, versus $1.03 billion in the year-ago period. The average estimate among 17 Estimize users was for earnings of $1.27 per share and revenue of $1.60 billion. "While the first quarter had its share of headwinds, our business is strong and we remain clearly focused on executing Harley-Davidson's strategy to be customer-led in everything we do, grow our reach among new customers in the U.S., grow internationally and continuously improve every aspect of our operations," said Keith Wandell, Chairman, President and Chief Executive Officer of Harley-Davidson, Inc. "We continue to manage Harley-Davidson for long-term performance from a position of great strength." Harley-Davidson shares fell 8.86 percent to $56.30 in pre-market trading.