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Is a Beat in Store for Harley-Davidson (HOG) in Q4 Earnings?
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Harley-Davidson, Inc. (HOG - Free Report) is scheduled to report fourth-quarter and fiscal 2017 earnings numbers on Jan 30 before the market opens. Last quarter, the bottom line met with the Zacks Consensus Estimate.
Harley-Davidson is a leading designer and manufacturer of heavyweight motorcycles. The stock has seen the consensus mark for fourth-quarter earnings being revised 4.2% downward over the last 30 days.
Let us see, how things are shaping up for this announcement.
Our proven model shows that Harley-Davidson is likely to beat on earnings this quarter. That is because it has the right combination of the two key ingredients — an Earnings ESP and a Zacks Rank #3 (Hold) or better — for increasing the odds of an earnings beat.
Zacks ESP: Harley-Davidson has an Earnings ESP of +0.1% as the Most Accurate estimate is pegged at 47 cents, higher than the Zacks Consensus Estimate of 46 cents. A positive ESP indicates a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Harley-Davidson carries a Zacks Rank of 3, which increases the predictive power of ESP. Thus, this combination raises the chances of an earnings beat.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revision.
Factors to Drive Better-than-Expected Results
In the fourth quarter of 2017, Harley-Davidson expects to ship 46,700-51,700 motorcycles compared with 42,414, shipped in the year-ago period. However, it anticipates softness in the U.S. market demand, high competition and global economic uncertainty.
Also, with an aim to increase its customer base, Harley-Davidson focuses on expanding product portfolio and making long-term investments. The company aims to launch 100 new motorcycle models by 2027. Further, to improve its international reach, Harley-Davidson has been adding new dealerships with a target of clinching 150-200 new global contracts by 2020. Based on these product launches and distribution network escalation, the company expects growth in its international retail sales.
For the quarter to be reported, the company had earlier announced a cash dividend of 36.5 cents per share, paid on Dec 29, reflecting a hike of 4.3% from 35 cents a year ago.
For the soon-to-be-released quarterly results, the Zacks Consensus Estimate for total revenues of Motorcycles and Related Products segment is pegged at $1.1 billion, up from the third quarter’s actual total revenues of $962 million.
Similarly, the consensus estimate for total revenues of the company’s Financial Services segment stands at $176 million, down from the third quarter’s actual total revenues of $189 million.
Price Performance
In the last three months, shares of Harley-Davidson have rallied 10.6%, outperforming the industry’s 2.7% gain.
Other Stocks to Consider
Here are a few other auto stocks worth considering from the same space with the right combination of elements to beat estimates this time around:
Tenneco Inc. has an Earnings ESP of +2.63% and is a #3 Ranked player. The company will report fourth-quarter 2017 financial figures on Feb 9.
Genuine Parts Company (GPC - Free Report) has an Earnings ESP of +4.83% and a Zacks Rank #3. The company’s fourth-quarter 2017 financial numbers are expected to be announced on Feb 20.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Is a Beat in Store for Harley-Davidson (HOG) in Q4 Earnings?
Harley-Davidson, Inc. (HOG - Free Report) is scheduled to report fourth-quarter and fiscal 2017 earnings numbers on Jan 30 before the market opens. Last quarter, the bottom line met with the Zacks Consensus Estimate.
Harley-Davidson is a leading designer and manufacturer of heavyweight motorcycles. The stock has seen the consensus mark for fourth-quarter earnings being revised 4.2% downward over the last 30 days.
Let us see, how things are shaping up for this announcement.
Harley-Davidson, Inc. Price and EPS Surprise
Harley-Davidson, Inc. Price and EPS Surprise | Harley-Davidson, Inc. Quote
Why a Likely Positive Surprise?
Our proven model shows that Harley-Davidson is likely to beat on earnings this quarter. That is because it has the right combination of the two key ingredients — an Earnings ESP and a Zacks Rank #3 (Hold) or better — for increasing the odds of an earnings beat.
Zacks ESP: Harley-Davidson has an Earnings ESP of +0.1% as the Most Accurate estimate is pegged at 47 cents, higher than the Zacks Consensus Estimate of 46 cents. A positive ESP indicates a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Harley-Davidson carries a Zacks Rank of 3, which increases the predictive power of ESP. Thus, this combination raises the chances of an earnings beat.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revision.
Factors to Drive Better-than-Expected Results
In the fourth quarter of 2017, Harley-Davidson expects to ship 46,700-51,700 motorcycles compared with 42,414, shipped in the year-ago period. However, it anticipates softness in the U.S. market demand, high competition and global economic uncertainty.
Also, with an aim to increase its customer base, Harley-Davidson focuses on expanding product portfolio and making long-term investments. The company aims to launch 100 new motorcycle models by 2027. Further, to improve its international reach, Harley-Davidson has been adding new dealerships with a target of clinching 150-200 new global contracts by 2020. Based on these product launches and distribution network escalation, the company expects growth in its international retail sales.
For the quarter to be reported, the company had earlier announced a cash dividend of 36.5 cents per share, paid on Dec 29, reflecting a hike of 4.3% from 35 cents a year ago.
For the soon-to-be-released quarterly results, the Zacks Consensus Estimate for total revenues of Motorcycles and Related Products segment is pegged at $1.1 billion, up from the third quarter’s actual total revenues of $962 million.
Similarly, the consensus estimate for total revenues of the company’s Financial Services segment stands at $176 million, down from the third quarter’s actual total revenues of $189 million.
Price Performance
In the last three months, shares of Harley-Davidson have rallied 10.6%, outperforming the industry’s 2.7% gain.
Other Stocks to Consider
Here are a few other auto stocks worth considering from the same space with the right combination of elements to beat estimates this time around:
BorgWarner, Inc. (BWA - Free Report) has an Earnings ESP of +0.66% and is a Zacks #3 Ranked player. The company’s fourth-quarter 2017 financial results are expected to be released on Feb 8. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tenneco Inc. has an Earnings ESP of +2.63% and is a #3 Ranked player. The company will report fourth-quarter 2017 financial figures on Feb 9.
Genuine Parts Company (GPC - Free Report) has an Earnings ESP of +4.83% and a Zacks Rank #3. The company’s fourth-quarter 2017 financial numbers are expected to be announced on Feb 20.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>