Harley-Davidson Inc (HOG) said quarterly earnings fell 37 percent, pulled down by costs from its recession-triggered restructuring and a tax change in its home state of Wisconsin but still expecting to meet full-year shipment forecast; “mildly encouraged” that the rate at which sales declined in the United States, its biggest market, slowed during the quarter.
The company reported first-quarter net income of $117.3 million, or 50 cents a share, down from $187.6 million, or 79 cents a share, a year earlier. Analysts, on average, expected the company to report a profit of 52 cents a share on sales of $1.30 billion, according to Reuters Estimates
Well, even though it missed, doesn it matter? no, its shares rose 6.2 percent in premarket trading on Thursday. My bearish trade is going to nose dive, but thankfully those are May’09 options, so I still have time to convert those into possibly bullish spread or play intra day to reduce loss exposure. This is going to be 2nd consecutive losing trade after CSX.
On the other hand JP Morgan (JPM) reported better-than-expected first-quarter profit as improved investment banking performance offset increased losses from credit cards and other consumer debt. Most are saying AIG Pay-outs and Mark-to-Market has no major impacts. You may wanna read an interesting article from NY Times for an additional perspective. And oh btw, where is the competition? Isn’t this good time to get rid of regulatory strings; so why shouldn’t I refund TARP funds and make more money?
Have fun, profitable trading, OP