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Harley-Davidson (HOG) Q3 Earnings Beat Estimates, Fall Y/Y

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Harley-Davidson Inc. (HOG - Free Report) is the world’s leading designer and manufacturer of heavyweight motorcycles and related products and merchandise. The large market share provides scale advantages over most competitors. Furthermore, the company maintains an extremely strong franchise. It is also expanding its product portfolio to increase its customer base.

However, Harley-Davidson has been facing challenges like heavy discounts by competitors and unfavorable foreign currency exchange. The company has also been struggling to increase the operating income of the Financial Services segment.

Estimate Trend & Surprise History

Investors should note that the third-quarter earnings estimate for Harley-Davidson inched down by a cent over the last 30 days. However, the company has a track record of delivering positive earnings surprises. It has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of 2.95%. Investors have been eagerly awaiting Harley-Davidson’s latest earnings report to see whether it outperforms this time as well.

HARLEY-DAVIDSON Price and EPS Surprise

 

HARLEY-DAVIDSON Price and EPS Surprise | HARLEY-DAVIDSON Quote

Zacks Rank

Harley-Davidson currently has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this Wisconsin-based motorcycle manufacturer’s earnings announcement below:

Earnings Beat Estimates

Harley-Davidson raked in earnings of 64 cents per share that surpassed the Zacks Consensus Estimate of 63 cents. However, earnings were lower than 69 cents recorded in the year-ago quarter.

Revenues Miss Estimates

Revenues from Motorcycles and Related Products declined to $1.09 billion in third-quarter 2016 from $1.14 billion in the year-ago quarter. The figure missed the Zacks Consensus Estimate of $1.11 billion.

Harley-Davidson logged consolidated revenues of $1.27 billion, which deteriorated from $1.32 billion posted a year-ago.

Key Stats/Developments to Note

Harley-Davidson reaffirmed its guidance for motorcycle shipments in 2016 at 264,000–269,000 units. This implies that the year over year change in shipments will vary between a decline of 1% and a rise of 1%.

In the fourth quarter of 2016, Harley-Davidson expects to ship 44,200 to 49,200 motorcycles, compared with 48,149 motorcycles shipped in the year-ago period.

Market Reaction

Harley-Davidson’s shares have remained inactive so far following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Harley-Davidson’s earnings report!

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