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Harley-Davidson (NYSE: HOG) Provides Bright Spot for Earnings Season

Submitted by Mike Swanson on Tue, 2010-07-20 13:35.

Shares of Harley-Davidson (NYSE: HOG) are up today in response to its release of positive earnings before the opening bell today.

Wall Street analysts consensus estimates were for Harley-Davidson to earn 42 cents a share. The company in fact blew through these estimates and made 59 cents a share. In response bidders are trading Harley shares up over 12% at the time up this update.

Harley has been restricting itself over the past year and did announce that it saw a drop of 5.5% for motor cycle sales across the help. However, investors are encouraged by the fact that this decline is much less than the 18% decline in sales seen in the first quarter of this year.

Harley motorcycles cost between $7,000 and $25,000 so their sales have been greatly impacted by fluctuations in the US economy. Harley took strong measures to cut costs in its restricting program and has plans to be more flexible with its work force.

Earnings for Harley also got a life from a boost in income in its Financial Services decision thanks to lower borrowing costs and one time charges from the last quarter.

Today IBM and Goldman Sachs both posted earnings reports that disappointed investors and caused selling the stock market so Harley-Davidson is providing a nice bright spot in what might otherwise be a dismal day for the stock market.

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