What happened
Actions of Harley Davidson (NYSE: HOG) fell 19% on Tuesday’s noon trading session after the company released its fourth quarter and full-year 2020 earnings that were well below expectations.
And
After the motorcycle maker’s third quarter report showed hope that the company’s revamped recovery plan, called The Hardwire, could be gaining momentum, the latest figures show that Harley is still mired in the same quagmire as before.
While Wall Street predicted that Harley would post an adjusted earnings of $ 0.21 per share, it actually posted a large loss of $ 0.44 per share. Last year, it posted a profit of $ 0.20 per share.
Image source: Harley-Davidson.
She attributed the slowdown to the smooth motorcycle market, which more than offset the profits generated by its financial services division.
What now
Harley-Davidson’s sales are still in a bolt. Motorcycle revenue plunged 51% in the quarter, with sales in the United States falling 15% year over year, and 13% in other parts of the world. Shipments fell 48%, to less than 21,000 units.
Although the bicycle maker did not mention LiveWire in its other launch, sales are included in its cruiser segment, and these bikes have suffered the biggest drops worldwide, down 54%. Touring and sports bikes fell in the 40% range.
This indicates that Harley-Davidson has a much longer road to recovery than analysts previously thought. Considering Polaris Industries Recently, reporting its own results, which showed marked gains in sales of its Indian Motorcycle brand, investors should not expect Harley to return in full force.