You Shouldn't Have Been Surprised by Harley-Davidson's Big Earnings Miss

Investors shouldn't have been surprised by Harley-Davidson's (NYSE: HOG) dismal second-quarter earnings report, though the sharp drop in its stock suggests they were. It was clear early on the maker of big steel horses was being too optimistic about its numbers because its sales weren't supporting the amount of bikes it was shipping to dealers.

Harley may have limped over the low end of the shipment guidance it provided after the first quarter, but with sales plunging 6.7% compared to last year, the bike maker now says it needs to make dramatic production cuts in the second half of the year to keep pace with weakening demand. It might not be the last time it does so.

Image source: Harley-Davidson.

Source: Fool.com