what happened
Shares of Harley-Davidson (NYSE: HOG) fell 19% in afternoon trading on Tuesday after the company reported earnings in the fourth quarter and full year in 2020 that fell well below expectations.
Approximately
After the motorcycle manufacturer in the third quarter’s report had hopes that the revised recovery plan called The Hardwire might be pulling, the latest figures show that Harley is still trapped in the same swamp it was.
Where Wall Street expects Harley to make an adjusted earnings of $ 0.21 per share, it actually came up with a huge loss of $ 0.44 per share. Last year, he made a profit of $ 0.20 per share.
Image source: Harley-Davidson.
This blames the downturn in the motorcycle market, which more than offsets the profits generated by the financial services division.
Now what
The Harley-Davidson sales are still in a bit of a twist. Car revenue fell 51% in the quarter, with U.S. sales up 15% year-over-year, and 13% elsewhere in the world. Shipments fell by 48% to below 21,000 units.
While the bike maker did not mention the LiveWire in its other version, sales were included in the cruiser segment, and the bikes had the largest global declines, with 54%. Touring and sports bikes dropped in the 40% range.
This suggests that Harley-Davidson has a much longer road to recovery than analysts previously thought. Consider Polaris Industries Recently, it reported its own results, which showed a sharp sales gain for its Indian motorcycle brand. Investors should not expect Harley to return.