Harley-Davidson (NYSE:HOG) stock was up 3.87% in early afternoon trading on April 5. Shares have jumped 14.4% in 2019 so far.
This is an impressive feat considering the negative sentiment that surrounded the company in late 2018. Rising global trade tensions led to new tariffs being introduced by the United States and European Union (EU). Harley estimated that it would spend at least $40 million to cover new tariffs costs in 2018 alone.
In 2018 Harley saw cash from operations rise 20% year-over-year to more than $200 million. More than 52,000 Harley riders were added in the United States, but U.S. Retail sales fell 10.2% due to headwinds in the U.S. market. Worldwide retail sales dropped 6.1% from the prior year.
Adjusted diluted earnings per share in 2018 climbed to $3.78. Full-year net income increased to $531.5 million compared to $521.8 million in 2017.
Harley is expected to release its first-quarter results on April 23. There has been some reported progress in trade talks between the U.S. and China, but the U.S.-E.U. relationship is unchanged from late last year.
Many experts expect the U.S. to turn its trade guns on the E.U. once its deal with China is complete. This means that more pressure on companies like Harley may be forthcoming.
Harley is now trading at the mid-to-high end of its 52-week range.
Shares of Harley had an RSI of 72 as of afternoon trading on April 5. This put it in overbought territory ahead of its first-quarter earnings release.
Related Stories
