Harley-Davidson Earnings Smash Expectations. Why the Stock Is Down.

Core Viewpoint - Harley-Davidson reported strong third-quarter earnings that exceeded expectations, but the stock price declined due to concerns over falling motorcycle sales [2][3][4]. Financial Performance - Harley-Davidson announced third-quarter earnings per share (EPS) of $3.10 from sales of $1.3 billion, surpassing Wall Street's expectations of EPS of $1.53 from sales of $1 billion [3][4]. - The company's financial services unit significantly contributed to profits, with operating profit rising from $77 million to $439 million year over year [4][6]. - Despite the strong overall results, motorcycle retail sales decreased by 6% year over year, and operating income from the motorcycle business fell by $1 million to $54 million [4][6]. Strategic Insights - The CEO highlighted the positive impact of the Harley-Davidson Financial Services (HDFS) transaction on the overall business model, emphasizing the importance of dealer success for the company's growth [5][6]. - Harley-Davidson's stock has struggled, down approximately 20% over the past five years, with sales expected to decline from $4.9 billion in 2022 to $3.7 billion in 2025 [6][7].