NEW YORK (TheStreet) -- Shares of Harley-Davidson (HOG) - Get Report are up 3.85% to $52.97 in late-afternoon trading on Friday after reporting an earnings and revenue beat for the 2016 second quarter.
Before Thursday's market open, the company reported earnings of $1.55 per share, beating analysts' estimates of $1.54 per share. Revenues rose 2% year-over-year to $1.86 billion, above analysts' expectations of $1.67 billion.
Harley-Davidson's domestic sales fell 5.2% in the quarter, reflecting softer demand in the U.S., where motorcycle sales overall declined 8.6% in the same quarter. The U.S. is the Milwaukee, WI-based company's biggest market.
In response, Harley-Davidson lowered its 2016 full-year motorcycle shipment outlook to between 264,000 and 269,000 from between 269,000 to 274,000.
Despite the better-than-expected results, RBC Capital downgraded the stock to "underperform" from "sector perform" with a $43 price target this morning based on soft industry demand and "concern over HOG overshipping and creating elevated dealer inventories that could take multiple quarters to resolve."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate HARLEY-DAVIDSON INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.
You can view the full analysis from the report here: HOG