Harley-Davidson's Stock Surges After Profit, Sales Beat Expectations

Harley-Davidson Inc.'s stock surged 2.8% in premarket trade Tuesday, after the motorcycle maker beat profit and sales expectations. Earnings fell to $299.8 million, or $1.44 a share, from $354.2 million, or $1.62 a share, in the same period a year ago, but came in above the FactSet earnings-per-share consensus of $1.39. Revenue slipped to $1.82 billion from $2 billion, but beat the FactSet consensus of $1.68 billion, as overall motorcycle shipments declined less than the guidance the company provided in April. The company affirmed its full-year 2015 outlook on motorcycle shipments, operating margin and capital expenditures. "In the face of a tough competitive environment, driven mostly by currency and greater competitive activity, we are leveraging our many strengths and meeting the challenge head on," said Chief Executive Matt Levatich. "We are encouraged by the momentum at retail as the quarter progressed, both in the U.S. and internationally." The stock had tumbled 17% year to date through Monday, while the S&P 500 had gained 3.4%.