Shares of
Harley-Davidson
fell Thursday, as markets continued to digest the departure of the company’s chief financial officer and Wall Street analysts’ gloomier sales outlooks.
On Wednesday evening,
Harley-Davidson
(ticker: HOG) said its Chief Financial Officer Gina Goetter will step down at the end of the month.
David Viney, vice president and treasurer will serve as interim CFO effective April 28. Goetter will transition to
Hasbro
(HAS) as CFO effective May 18.
“We believe this move reflects a broader role and compensation opportunity for Goetter rather than issues at HOG,” wrote BofA Securities analyst Robert Ohmes in a Wednesday report.
Shares of Harley-Davidson slid 8.5% after the market closed Wednesday in response to the company’s announcement. The decline continued into Thursday, with the stock dropping 2.8% to $36.50 in recent trading. So far this year, the motorcycle maker’s stock has shed about 12%.
The bigger concern for analysts, however, appears to be first-quarter sales. The company is set to report first-quarter financial results on April 27.
Ohmes lowered his first-quarter U.S. retail unit sales forecast to a 12% decline year over year, compared with a previous forecast for a 5% drop. The analyst cited weather challenges, higher interest rates, and stricter credit standards.
He also trimmed his price target for Harley stock to $55 from $65 previously. Ohmes maintained a Buy rating, however, amid “accelerating brand momentum and new management strategy driving significant increases in unit profitability.”
Though the company didn’t reiterate its financial guidance for 2023, Ohmes says “their strategy remains on track despite what we believe was a slower start to the dealer network” in the first quarter.
UBS analyst Robin Farley had similar concerns, writing in a Wednesday note that Harley’s first-quarter retail sales at U.S. dealers could decline nearly 20%. Farley has a Neutral rating on the stock and a price target of $49.
Earlier this year, Harley-Davidson posted fourth-quarter earnings of 28 cents per share, higher than the seven cents analysts surveyed by FactSet had expected, and revenue clocked in at $1.14 billion, above the $918 million analysts had penciled in.
Write to Emily Dattilo at [email protected]
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