We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Harley-Davidson (HOG) Q1 Earnings Beat Estimates, Fall Y/Y
Read MoreHide Full Article
Harley-Davidson, Inc. (HOG - Free Report) reported earnings of $1.05 per share in the first quarter of 2017, beating the Zacks Consensus Estimate of 99 cents. However, earnings were lower than $1.36 recorded in the year-ago quarter.
Net income decreased to $186.4 million from $250.5 million recorded a year ago.
Operating revenues (excluding financial services) declined to $1.33 billion in the first quarter of 2017 from $1.58 billion recorded in the year-ago quarter. The figure missed the Zacks Consensus Estimate of $1.35 billion. Harley-Davidson logged consolidated revenues of $1.5 billion, which deteriorated from $1.75 billion posted a year ago.
Operating income decreased to $291.5 million from $388.8 million in the year-ago period.
Harley-Davidson, Inc. Price, Consensus and EPS Surprise
Revenues from Motorcycles and Related Products dropped to $1.33 billion in the first quarter of 2017 from $1.58 billion recorded in the year-ago quarter. The decline was due to lower retail sales. On the other hand, operating income declined to $238.8 million from $332.5 million a year ago.
Revenues from Harley-Davidson motorcycles fell 16.7% to $1.1 billion. The company shipped 70,831 motorcycles to dealers and distributors worldwide during the first quarter of 2017, compared with 83,036 shipments in the first quarter of 2016.
Harley-Davidson’s worldwide dealer retail sales of new motorcycles declined 4.2% to 55,049 units from 57,458 motorcycles in the year-ago quarter. This was due to weakness in the U.S. as well as some international markets. Harley-Davidson’s sales in the U.S. declined 5.7% to 33,316 motorcycles. International sales went down 1.8% to 21,733 motorcycles from 22,132 motorcycles in the prior-year quarter. An improvement of 24.2% in sales in the Latin America region was offset by a 4.4% decline in Canada, 0.4% decline in the Europe, Middle East, and Africa (EMEA) region and 9.3% decline in the Asia-Pacific region.
Revenues from Parts and Accessories dropped 8% to $169 million, while revenues from General Merchandise— including MotorClothes apparel and accessories—fell 20.9% to $55.8 million.
Harley-Davidson Financial Services (HDFS)
Revenues in the Financial Services segment dipped 0.1% to $173.2 million in the first quarter of 2017. Operating income declined 6.6% to $52.6 million from the year-ago figure of $56.4 million.
Financial Position
Harley-Davidson had cash and cash equivalents of $839.7 million as of Mar 26, 2017, compared with $694 billion as of Mar 27, 2016. Long-term debt fell to $5.32 billion from $5.46 billion as of Mar 27, 2017.
In first-quarter 2017, Harley-Davidson’s operating cash flow improved to $159.9 million from $41.1 million in first-quarter 2016. Capital expenditures decreased to $24 million from $39 million in the year-ago period.
Share Repurchases
Harley-Davidson spent $70.9 million to repurchase 1.2 million shares in first-quarter 2017. As of first-quarter end, it had authorization to buy back another 18 million shares.
Looking Forward
Harley-Davidson reiterated its expectation of motorcycle shipments in 2017 to be either the same or slightly lower than 2016.
In the second quarter of 2017, Harley-Davidson expects to ship 80,000 to 85,000 motorcycles, compared with 88,160 motorcycles shipped in the year-ago period.
The company continues to project operating margin and gross margin to be similar to the 2016 levels. It expects capital expenditures of $200–$220 million this year.
Price Performance
Harley-Davidson outperformed the Zacks categorized Automotive-Domestic industry over the last three months owing to its improving financial position as well as geographic and product expansion. The company’s shares gained 1.5% over the last three months, compared with the industry’s 0.3% decline.
Zacks Rank & Key Picks
Currently, Harley-Davidson carries a Zacks Rank #3 (Hold).
BorgWarner has an expected long-term growth rate of 8.6%.
American Axle has an expected growth rate of around 8.1% over the long term.
GKN has an expected long-term growth rate of 6.6%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Harley-Davidson (HOG) Q1 Earnings Beat Estimates, Fall Y/Y
Harley-Davidson, Inc. (HOG - Free Report) reported earnings of $1.05 per share in the first quarter of 2017, beating the Zacks Consensus Estimate of 99 cents. However, earnings were lower than $1.36 recorded in the year-ago quarter.
Net income decreased to $186.4 million from $250.5 million recorded a year ago.
Operating revenues (excluding financial services) declined to $1.33 billion in the first quarter of 2017 from $1.58 billion recorded in the year-ago quarter. The figure missed the Zacks Consensus Estimate of $1.35 billion. Harley-Davidson logged consolidated revenues of $1.5 billion, which deteriorated from $1.75 billion posted a year ago.
Operating income decreased to $291.5 million from $388.8 million in the year-ago period.
Harley-Davidson, Inc. Price, Consensus and EPS Surprise
Harley-Davidson, Inc. Price, Consensus and EPS Surprise | Harley-Davidson, Inc. Quote
Motorcycles and Related Products
Revenues from Motorcycles and Related Products dropped to $1.33 billion in the first quarter of 2017 from $1.58 billion recorded in the year-ago quarter. The decline was due to lower retail sales. On the other hand, operating income declined to $238.8 million from $332.5 million a year ago.
Revenues from Harley-Davidson motorcycles fell 16.7% to $1.1 billion. The company shipped 70,831 motorcycles to dealers and distributors worldwide during the first quarter of 2017, compared with 83,036 shipments in the first quarter of 2016.
Harley-Davidson’s worldwide dealer retail sales of new motorcycles declined 4.2% to 55,049 units from 57,458 motorcycles in the year-ago quarter. This was due to weakness in the U.S. as well as some international markets. Harley-Davidson’s sales in the U.S. declined 5.7% to 33,316 motorcycles. International sales went down 1.8% to 21,733 motorcycles from 22,132 motorcycles in the prior-year quarter. An improvement of 24.2% in sales in the Latin America region was offset by a 4.4% decline in Canada, 0.4% decline in the Europe, Middle East, and Africa (EMEA) region and 9.3% decline in the Asia-Pacific region.
Revenues from Parts and Accessories dropped 8% to $169 million, while revenues from General Merchandise— including MotorClothes apparel and accessories—fell 20.9% to $55.8 million.
Harley-Davidson Financial Services (HDFS)
Revenues in the Financial Services segment dipped 0.1% to $173.2 million in the first quarter of 2017. Operating income declined 6.6% to $52.6 million from the year-ago figure of $56.4 million.
Financial Position
Harley-Davidson had cash and cash equivalents of $839.7 million as of Mar 26, 2017, compared with $694 billion as of Mar 27, 2016. Long-term debt fell to $5.32 billion from $5.46 billion as of Mar 27, 2017.
In first-quarter 2017, Harley-Davidson’s operating cash flow improved to $159.9 million from $41.1 million in first-quarter 2016. Capital expenditures decreased to $24 million from $39 million in the year-ago period.
Share Repurchases
Harley-Davidson spent $70.9 million to repurchase 1.2 million shares in first-quarter 2017. As of first-quarter end, it had authorization to buy back another 18 million shares.
Looking Forward
Harley-Davidson reiterated its expectation of motorcycle shipments in 2017 to be either the same or slightly lower than 2016.
In the second quarter of 2017, Harley-Davidson expects to ship 80,000 to 85,000 motorcycles, compared with 88,160 motorcycles shipped in the year-ago period.
The company continues to project operating margin and gross margin to be similar to the 2016 levels. It expects capital expenditures of $200–$220 million this year.
Price Performance
Harley-Davidson outperformed the Zacks categorized Automotive-Domestic industry over the last three months owing to its improving financial position as well as geographic and product expansion. The company’s shares gained 1.5% over the last three months, compared with the industry’s 0.3% decline.
Zacks Rank & Key Picks
Currently, Harley-Davidson carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include BorgWarner Inc. (BWA - Free Report) , American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and GKN plc . All stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BorgWarner has an expected long-term growth rate of 8.6%.
American Axle has an expected growth rate of around 8.1% over the long term.
GKN has an expected long-term growth rate of 6.6%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>