Harley-Davidson announced its third-quarter profit plunged versus a year ago, but topped Wall Street estimates, sending shares higher.
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The motorcycle maker said its profit fell 24 percent year-over-year to $86.6 million, or $0.55 a share, as revenue slipped 3.8 percent to $1.27 billion. Wall Street analysts surveyed by Refinitiv were expecting earnings of $0.51 on revenue of $1.04 billion. Adjusted earnings, which exluded restructuring costs and E.U. and China tariffs, were 70 cents a share.
“The company was encouraged by global retail sales results driven by its actions and tempered U.S. industry rate of decline,” Harley-Davidson said in its earnings release.
International retail sales rose 2.7 percent versus a year ago while the decline in U.S. retail sales fell 3.6 percent. Motorcycle shipments were down 5.8 percent year-to-date to 45,837.
Harley says it saved $16.7 million in the quarter as a result of its manufacturing optimization initiative, which included closing facilities in Australia and Kansas City, Missouri. As a result of the initiative, Harley expects to save $25 million to $30 million in 2019 and $65 million to $70 million annually after 2020.
Harley reaffirmed its full-year 2019 motorcycle shipments guidance of 212,000 to 217,000. It expects to ship between 38,500 and 43,500 motorcycles in the fourth quarter.
Shares of the motorcycle maker were up 8.6 percent this year through Monday’s closing bell.