Harley-Davidson popped 9% today on boost from new engine, cost cuts

|By:, SA News Editor

Harley-Davidson (NYSE:HOG) surged 9% in today's trade for its biggest gain since July 1, as its new engine helped Q3 sales despite a weak U.S. market, and the company trims nearly 300 jobs as part of a cost-cutting plan.

Implied Q4 retail sales are much stronger than recent quarters, and management commentary about the reception of HOG’s new Milwaukee-Eight engine was "very positive, which bodes incrementally well" for Q4 and FY 2017 results, says Bernstein analyst David Beckel, who rates shares at Outperform.

With the initial impact on demand from the new engine, HOG is "confident that the entire lineup will drive our retail sales for the remainder of 2016 and position us well heading into the spring riding season and beyond," CEO Matt Levatich said in today's earnings conference call.