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Bear Of The Day: Harley-Davidson Inc (HOG)

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Harley Davidson Inc (HOG - Free Report) recently fell to a Zacks Rank #5 (Strong Sell) after the company missed earnings. Let's take a look at the report and what else happened afterward in this Bear of the Day article.

Description

Harley-Davidson, Inc. manufactures and sells custom, cruiser, and touring motorcycles. The company was founded in 1903 and is based in Milwaukee, Wisconsin.

Recent Earnings

Sometimes the estimates that are availbe are not complete.  In the case of HOG, the Zacks data is a little light.  I see the Wall Street consensus for the more recent quarter at $0.22 and the company reporting $0.20.  That is a miss of two cents as revenues fell 8.4% on an annual basis to $874M and below the $928M estimate.

Estimate Movements

Since the miss, the Zacks Consensus Estiamte has been falling.  The number for the current quarter was at $1.00 90 days ago, but is now just $0.66.

The full year number is more important to the Zacks Rank and that has slipped as well.  The 2020 fiscal number moved from $3.47 to $3.09 and the fiscal year for 2021 has dropped to $3.31 from $3.55 60 days ago.

This is the primary reason the Zacks Rank has fallen to the lowest level.

Since The Earnings Report

The other day I see that KeyBanc Capital Markets upgraded HOG to Sector Weight from Underweight.  They believe that sentiment may have bottomed.  They went on to mention that the guidance offered by management still seems a little aggressive which is keeping the risk / reward in unfavorable territory.  

That all said, investors like to see an upgrade in a stock like this and hopefully it will be a sign of good things to come.

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