NEW YORK, NY / ACCESSWIRE / July 25, 2018 / While President Trump took to his Twitter to say that tariffs are great, some companies don't agree, including Harley Davidson. Despite the company saying it expects to incur about $45 million to $55 million in increased costs this year due to the tariff conflict, Harley Davidson’s stock saw big gains on second quarter results that beat on both the top and bottom line. JetBlue Airways saw losses after reporting second quarter results that were impacted by higher fuel costs.
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JetBlue Airways Corporation
JetBlue Airways Corporation shares closed down 10.20% yesterday on about 20.6 million shares traded. The stock sank to a new low of $17.76 after reporting second quarter financial results. The Company reported a Net Loss of $120 million ($0.38 loss per share) in the quarter due to $319 million impairment charge it took on its Embraer E190 fleet, which it is retiring to buy new A220 jets from an Airbus-Bombardier joint venture. On an adjusted basis, JetBlue reported earnings of 38 cents a share versus the 36 cents that analysts had expected. Revenue at $1.93 billion was also in line with what was expected. Traders were probably worried about the fact that the company is planning to trim growth in the second half of the year as fuel cost, which is the largest expense for Jet Blue, increased over 40% yoy. CEO Robin Hayes stated, "Our financial performance was impacted by the holiday calendar, but more importantly, by fuel prices that increased over 40% year over year. The team is focused on mitigating the impact of higher fuel in order to stabilize and improve our margins. We are planning a series of adjustments to both capacity and our ancillary revenue to take effect over the coming months." Shares of the stock are down almost 20% this year.
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Harley-Davidson, Inc. shares closed up 7.67% yesterday as the motorcycle company reported second quarter financial results ahead of the bell. The company saw a profit of $248.3 million for the quarter, which was down 4% from a year ago. Earnings came to $1.45 a share compared to $1.48 from the year ago period. Excluding manufacturing optimization costs, the company earned $1.52 per share, much ahead of the expected $1.34 per share. Revenue at $1.53 billion was a 3% decrease but was also ahead of the $1.42 billion that analysts waited for. The company had guided for motorcycle sales in the range of 67,500 to 72,500. The actual number 72,593, though above the forecast range, it was an 11% drop yoy. According to CEO Matt Levatich, the company's results were in line with expectations. He stated, "Our manufacturing optimization, demand-driving investments and commitment to manage supply in line with demand remain on target and continue to strengthen our business." For the full-year, the company is reiterating a forecast range for shipments of 231,000 to 236,000 motorcycles. The company also expects to incur about $45 million to $55 million in increased costs this year due to the ongoing global trade conflict.
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