Discussion Board 1
Harley-Davidson
Devon Hudson
Liberty University
BUSI-530: Managerial Finance
October 29, 2020
Discussion Board #1- Company Analysis
Harley-Davidson
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Discussion Board 1
Harley-Davidson
Financial Position
Harley-Davidson is one of the world's largest motorcycle manufacturers and has
successfully been in business since the early 1900s. Over the years, Harley-Davidson has
endured leadership transitions along with economic hardships. However, the company has
continued to remain prosperous due to its cult-like following and its continued reputation for
performance and reliability (Guilford, 2018).
According to Harley Davison's 2020 projected outlook, the company expected
approximately $4.53 to $4.66 billion in revenue, which is a decrease from 2019. The company
also expected the motorcycle segment revenue in the first quarter to be close to $1.09 to $1.17
billion (Harley-Davidson, 2020). Harley Davidson exceeded expectations with a final figure of
$1.30 billion at the end of the quarter. However, upon reviewing the second quarter, there was a
significant decrease to $865.23 million in revenue, which is most likely due to the Covid-19
pandemic. Harley Davidson's stock price is currently $33.86, a 16.35 decrease from the previous
year (Google Finance, 2020).
Economic Outlook
Many companies have experienced a loss in stock prices due to the global pandemic.
Usually, companies like Harley Davidson should have experienced an initial decrease but should
have quickly returned to their regular stock prices. Based on the fact, the summer months usually
are more successful for motorcycle sales due to the increased weather temperatures for
motorcycle riders and opportunities for events and vacations during these months.
Harley Davidson has seen a slow return in stock prices and is still trading approximately
five dollars below what they started the year, at $38.90. When comparing Harley Davison to its
top competitors Polaris Inc and Yamaha, Harley-Davidson is significantly behind its competitors.
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Discussion Board 1 3 Harley-Davidson
For example, Polaris Inc has started the year at $101.44 per share and has also experienced
the
same dramatic decrease in stock prices Harley Davidson did during the start of the pandemic.
Within a month, prices were steadily increasing, and during the peak summer months, Polaris
Inc
was trading around $105.26 per share.
Investment Decision
Currently, based on Harley Davidson's past revenue trends and stock prices, there has
been a visible decrease in revenue over the past five years. Therefore, investing in Harley
Davidson would not be a sound decision for investors. The company has continued to increase
Research and Development spending each year since 2015; however, they are still losing
revenue
and gross profit (Reuters, 2020). Additionally, Harley Davidson not being able to recover its
stock prices compared to competitors during peak sales months is also an issue. Hopefully,
Harley-Davidson, a company with prestige and legacy, will fix these issues and turn its
financials
around for the future.
Discussion Board 1
Harley-Davidson
References
Google Finance. (2020). Harley-davidson inc (HOG: NYSE) stock price, realtime quote & news.
Google Finance. https://www.google.com/finance/quote/HOG:NYSE?
comparison=NYSE%3APII%2CTYO%3A7272.
Guilford, G. (2018). Harley davidson's 100-year history is a case study in the marketing of the
american maverick. Yahoo Sports. https://sports.yahoo.com/harley-davidson-100-history-
case-142903621.html.
Harley-Davidson. (2020). Davidson announces fourth quarter, full-year 2019 results: Harley-
davidson USA. Harley Davidson Investor Relations. http://investor.harley-
davidson.com/news-releases/news-release-details/harley-davidson-announces-fourth-
quarter-full-year-2019-results.
Reuters. (2020). HOG - harley-davidson inc financials. Reuters.
https://www.reuters.com/companies/HOG/financials.
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