Ford Motors Company, Harley-Davidson Inc Slip After Earnings

Ford and Harley-Davidson released their second quarter earnings results before opening bell this morning. Ford posted adjusted earnings of 52 cents per share on $39.49 billion in sales. Analysts had been expecting earnings of 60 cents per share and $36.2 billion in revenue. In last year’s second quarter, the automaker reported $37.26 billion in sales and adjusted earnings of 54 cents per share.

Harley Davidson posted earnings of $1.55 per share on $1.86 billion in revenue, compared to the consensus estimates of $1.53 per share and $1.66 billion. In last year’s second quarter, the motorcycle manufacturer posted earnings of $1.44 per share on $1.82 billion in sales.

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Ford shares fall as segment sales miss

Ford’s GAAP earnings declined to 49 cents per share from 54 cents per share last year. Net income declined $190 million to $2 billion. North America revenue missed consensus estimates, coming in at $23.8 billion, compared to the consensus of $24.51 billion. However, Ford beat expectations for Europe revenue, coming in at $8.1 billion against the consensus of $7.17 billion. Ford lost three-tenths of a point of global market share in the second quarter, standing at 7.5%.

Ford management said they continue to expect this year’s results to be strong and maintained their full-year outlook for pre-tax profits and operating margin being equal to or better than last year. However, they also warned that new risks now challenge this guidance and may make it difficult to achieve it.

Shares of Ford plunged by as much as 6.79% to $12.90 in premarket trading this morning.

Harley-Davidson cuts shipment guidance

Harley-Davidson’s worldwide retail motorcycle sales declined 1.9% on the back of weakness in the U.S. where retail sales tumbled 5.2% year over year. The overall U.S. industry did worse, however, falling 8.6%. Harley-Davidson’s market share improved 2 points to 49.5%. International retail sales improved 4.3% year over year.

The company revised its full-year guidance and now expects to ship between 264,000 and 269,000 motorcycles to dealers around the world this year, which is a range that’s between down 1% and up 1% from last year. The previous outlook was 269,000 to 274,000. In the third quarter, Harley-Davidson expects to ship between 48,400 and 53,500 motorcycles.

Shares of Harley-Davidson declined by as much as 0.36% to $50.40 in premarket trading this morning.