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(Edaily reporter Ji-na Jeong) Shares of motorcycle maker Harley-Davidson (HOG) rose on the 25th (local time) as the company achieved second-quarter profit growth and announced a new share repurchase plan worth US$1 billion.
Harley-Davidson’s new share repurchase program, which it plans to complete by 2026, is equivalent to about 21% of its current market value of $4.79 billion.
In midday trading today, Harley-Davidson shares rose 5.85% to $35.85.
Harley-Davidson’s second-quarter earnings per share (EPS) rose to $1.63 from $1.22 in the same period last year, beating expectations of $1.40, Market Watch reported.
Sales rose 12% to $1.62 billion, beating expectations of $1.38 billion.
Harley-Davidson forecasts annual sales growth to fall 5-9%. Operating income growth is expected to be between 0% and 5%.
In response, CFRA analyst Garrett Nelson said: “We lower our price target from $40 to $35 to reflect Harley-Davidson’s lower sales guidance despite its strong second quarter results.”
“Harley-Davidson’s strong quarter was largely overshadowed by concerns about performance for the rest of the year,” Nielsen said.
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