HOG - Harley-Davidson gains after topping estimates reaffirming guidance

Harley-Davidson ( NYSE: HOG ) rode higher in early trading on Wednesday after cruising past estimates with its Q3 earnings report.

Global motorcycle shipments rose 19% during the quarter as production largely recovered from the previously announced unexpected production suspension in Q2. HDMC Revenue grew 24% behind the profitable unit growth and global pricing. HDMC operating income margin shot up 9.5 points to 17.9%.

Global retail motorcycle sales in Q3 were down 2%. Growth in Asia Pacific was driven by strong demand and a quick refill of dealer inventory coming out of the production suspension. North America retail performance fell 5% as it continued to be adversely impacted by lower dealer inventories. Retail performance strengthened during the quarter as dealer inventories replenished.

Harley-Davidson ( HOG ) saw shipment growth for the Grand American Touring, Cruise, and Adventure Touring models during the quarter.

Guidance: For the full year, HOG continues to expect HDMC revenue growth of 5% to 10%, operating income margin of 11% to 12%, and operating income to decline by 20% to 25%. The company also sees capital investments of $170M to $190M from a previously expected spend of $190M  to $220M.

Shares of HOG move up 1.45% premarket to $37.66 following the double earnings beat.

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