Harley-Davidson Inc. (NYSE:HOG) shares slammed into reverse today after the iconic motorcycle maker’s better-than-expected second-quarter earnings were overshadowed by lowered guidance for the full-year.
The Milwaukee-based firm posted second quarter net income of US$258.9mln, or US$1.48 a share, down from US$280.4mln, or US$1.55 a share a year earlier, as revenue fell to US$1.77bn, down from US$1.86bn.
But both the EPS and revenue numbers beat consensus forecasts for US$1.38 and US$1.59bn respectively.
Retail motorcycle sales were down 6.7% in the quarter, falling 9.3% in the US, and the company said it is now expecting to ship 241,000 to 246,000 motorcycles to dealers worldwide in 2017, down 6% to 8% from 2016.
Previous guidance was for full-year shipments to be flat to modestly lower.
Harley-Davidson’s chief executive, Matt Levatich said: "Given US industry challenges in the second quarter and the importance of the supply and demand balance for our premium brand, we are lowering our full-year shipment and margin guidance."
For the third quarter, the firm said it expects to ship 39,000 to 44,000 motorcycles, down 10% to 20% from 2016. Full-year operating margins are expected to be down about 1 percentage point.
In pre-market trading in New York, Harley Davidson shares were almost 10% lower at US$46.85.