Harley Davidson (NYSE: HOG): Shares Plunge 9.79 %


Harley Davidson (NYSE: HOG)

Being a motorcycle enthusiast myself, it pained me to witness the carnage that occurred in high volume selling of shares in Harley Davison, Tuesday, April 22, 2015.

Harley-Davidson’s 1st Qtr. Mixed

Harley-Davidson (HOG) reported mixed earnings.  They had increased first-quarter profits but fell shy on revenue.  The company noted their profits were in part due to a reduced tax rate. A recent point of contention in the sector has been competitors offering sharp discounts.  Rival motorcycle makers promoting sales have created a difficult environment for Harley-Davidson.  Due to the missed expectations the company lowered its full-year forecast for motorcycle shipments.

The Milwaukee-based company’s motorcycle and related products revenue declined to $1.51 billion from $1.57 billion, missing Wall Street forecasts. Nine analysts surveyed by Zacks expected $1.58 billion.

Harley-Davidson said that its revenue softened mostly because of a stronger dollar and slightly lower motorcycle shipments.

“Given the first-quarter retail results, and ongoing, increased levels of aggressive competitive discounting in the U.S. which we expect will continue, we are taking the precautionary step of lowering our estimated growth rate for full-year motorcycle shipments in order to manage supply in line with demand and protect the premium nature of our brand,” Chairman, President and CEO Keith Wandell said in a statement.

Oversold Based on Relative Strength Indicator?

A bullish investor could look at HOG’s 28.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints, dividend investors should investigate to decide if they are bullish on HOG and its dividend history.