Harley-Davidson rips it up in Q3

More of Harley-Davidson's hogs are hitting US highways — and that's revving the company's stock.

Shares of the iconic motorcycle maker zoomed 7.3 percent higher Tuesday after the company reported better-than-expected quarterly profits on solid global demand.

Retail sales at dealers in the US, which account for two-thirds of Harley-Davidson's business, jumped 3.4 percent in the third quarter as domestic dealers unleashed 50,167 new motorcycles onto the roads.

That's evidence that the company's strategy to diversify its customer base and market lower-priced bikes is taking hold, analysts said. Harley shares, which had been down 15 percent on the year, roared to close at $62.65.

Sales rose despite a tough comparison with last year's launch of Project Rushmore touring bikes, which had fueled a US sales surge of more than 20 percent.

Wall Street has likewise been worried about stiffer competition from rivals like Polaris and Honda, as well as profit hits from bike recalls, which cost the company $14 million in the quarter.

Overall, Harley's profit slipped nearly 8 percent as the company cut shipments to dealers who had been saddled with inventory after a slow second quarter.

The Milwaukee-based manufacturer had a third-quarter profit of $150.1 million, or 69 cents a share, down from the year-earlier $162.7 million, or 73 cents.

Still, that result came in well ahead of the 59 cents a share the Street expected, according to Reuters, with analysts citing increased factory efficiencies and demand for higher-margin accessories.

Worldwide, Harley dealers sold 73,217 motorcycles, up from 70,517 a year earlier.

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