Harley’s Earnings Preview

Harley-Davidson (HDI) reports tomorrow morning. This stock could easily go for $60 a share. I wouldn’t be surprised to see HDI earn 88 cents a share.

EXPECTATIONS: Analysts polled by Thomson Financial expect the Milwaukee-based company to earn 86 cents per share in sales of $1.29 billion.
ANALYST TAKE: “Based on our positive view of first quarter retail sales, we believe Harley will report a solid quarter,” Edward Aaron of RBC Capital Markets, wrote in a note to investors. He predicted Harley would match the consensus prediction,
“On balance, we estimate high single-digit U.S. retail growth on a slightly negative comparison in quarter one.”
Robin M. Farley of UBS Investment Research agreed that the first quarter’s warmer weather could drive its sales up, but questioned how much of that gain will take away from sales later in the year.
Farley predicted earnings of 84 cents per share for the quarter.
QUARTER DEVELOPMENTS: In March, Harley named Thomas E. Bergmann as its chief financial officer and vice president. He takes over for vice president and treasurer James Brostowitz, the acting financial chief since April 2005.
Bergmann was most recently chief executive of USF Corp., a transportation and logistics company which was acquired by another company in May 2005.
Also in March, Harley announced plans to open its first dealership in China. Beijing Harley-Davidson, partnered with dealer Beijing Feng Huo Lun, opened Saturday in the country’s capitol city.
The store will sell several Harley models, parts, accessories, merchandise and collectibles. It will offer rider training and events including organized rides.
COMPETITORS: Harley competes with Germany’s Bayerische Motoren Werke AG, or BMW, along with the motorcycle division of Honda Motor Co.
STOCK PERFORMANCE: Harley shares have risen 2.9 percent since the beginning of the year. On Tuesday, shares closed up 2 cents at $52.97 on the New York Stock Exchange.

Posted by on April 11th, 2006 at 5:50 pm


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