Let The Big Hog Eat: Harley-Davidson Profit Beats As Margins Rise, Boosts GM Outlook

Harley-Davidson (NYSE:HOG) reported Q2 EPS of $0.13, which may not be comparable to estimates for a loss of $0.64.

Revenues in the quarter fell 5.5% to $1.1 billion, inline with consensus estimates.

Gross margin was 35.0 percent in the second quarter, compared to 34.1 percent in the year-ago period. Second-quarter operating margin decreased to 13.9 percent from 15.3 percent in the second quarter of 2009.

Harley-Davidson issued the following statement regarding its guidance: “The Company reiterated its expectation to ship 201,000 to 212,000 Harley-Davidson motorcycles to dealers and distributors worldwide in 2010, a reduction of five to ten percent from 2009. In the third quarter of 2010, the Company expects to ship 53,000 to 58,000 Harley-Davidson motorcycles. Harley-Davidson now expects gross margin to be between 32.5 percent and 34.0 percent for the full year, versus the prior estimate of 32.0 percent to 33.5 percent.”

Harley-Davidson, Inc. designs, manufactures, and sells motorcycles. The Company’s products include heavyweight touring, custom, and performance motorcycles, as well as a line of motorcycle parts, accessories, and general merchandise. Harley-Davidson also provides motorcycle floor planning and parts and accessories financing to its North American and European dealers.

SmarTrend alerted subscribers to take profits in Harley-Davidson on May 05, 2010 at $31.71, since then the stock fell 25.5%. We are now watching for any positive developments that could result in a new uptrend signal.

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