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Harley-Davidson (HOG) Q4 Earnings Beat Estimates, Up Y/Y
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Harley-Davidson, Inc. (HOG - Free Report) reported adjusted earnings of 54 cents per share in fourth-quarter fiscal 2017, beating the Zacks Consensus Estimate of 46 cents. Earnings in the year-ago quarter were 27 cents.
Net income decreased to $8.3 million from $47.2 million, registered a year ago.
Motorcycle and related products revenues rose to $1.05 billion in the reported quarter compared with $933 million in the prior-year quarter. The figure surpassed the Zacks Consensus Estimate of $1.01 billion. The company also logged consolidated revenues of $1.23 billion, improving from the year-earlier period’s tally of $1.11 billion.
Harley-Davidson, Inc. Price, Consensus and EPS Surprise
Operating income increased to $101.5 million from $69.4 million in the year-ago period.
Fiscal 2017 Results
Harley-Davidson reported earnings of $3.02 per share in fiscal 2017, down from $3.83 earned in fiscal 2016. Also, earnings per share missed the Zacks Consensus Estimate of $3.41.
Net income fell to $521.8 million from $692.2 million recorded a year ago. Consolidated revenues declined to $5.65 billion from $6 billion in fiscal 2016. However, the figure also surpassed the Zacks Consensus Estimate of $4.88 billion.
Motorcycles and Related Products
Operating income from Motorcycles and Related Products rose to $37.8 million from $9.3 million, recorded a year ago.
During the quarter under review, revenues from Harley-Davidson motorcycles dropped 17% to $801.7 million. The company shipped 47,198 motorcycles to dealers and distributors worldwide during the fiscal fourth quarter under review compared with 42,414 shipments in fourth-quarter 2016.
Harley-Davidson’s worldwide retail sales of motorcycles fell 9.6% to 42,142 units from 46,610 motorcycles in the year-ago quarter.
Harley-Davidson’s retail motorcycle sales in the United States declined 11.1% to 23,195 units. International sales decreased 7.7% to 18,947 motorcycles from 20,533 in the prior-year quarter.
All the regions posted a sales decline from the previous-year quarter. While Canada witnessed a 4.9% gain, Latin America’s sales reduced 7.1%. Middle East and Africa (EMEA) region’s sales fell 5.5% while the Asia-Pacific region witnessed an 11.8% drop.
Revenues from Parts and Accessories slid 0.8% to $168 million. Similarly, the metric from General Merchandise — including MotorClothes apparel and accessories — dipped 2.3% to $71.2 million.
Harley-Davidson Financial Services (HDFS)
Revenues in the Financial Services segment rose 2.4% to $182 million in fourth-quarter 2017. Operating income improved 5.9% to $63.7 million from the year-ago figure of $60.1 million.
Financial Position
Harley-Davidson had cash and cash equivalents of $687.5 million as of Dec 31, 2017 compared with $760 million as of Dec 31, 2016. Long-term debt was lowered to $4.6 billion from $4.7 billion as of Dec 31, 2016.
For the fiscal year ending Dec 31, 2017, Harley-Davidson’s operating cash inflow declined to $1 billion from $1.2 billion a year-ago. Capital expenditures decreased to $206 million from $256 million in the preceding-year period.
Looking Forward
For fiscal 2018, Harley-Davidson expects full-year motorcycle shipments to be roughly within the range of 231,000-236,000 units, down from 241,498 units in fiscal 2017. Also, for the first quarter of fiscal 2018, the company expects motorcycle shipments to be approximately 60,000-65,000 units.
Moreover, for fiscal 2018, the company anticipates capital expenditures within $250-$270 million band in comparison to $206 million in fiscal 2017. Further, the operating margin is estimated at nearly 9.5-10.5% as compared to 12.5% in fiscal 2017.
Price Performance
In the last three months, shares of Harley-Davidson have outperformed the industry it belongs to. The stock has rallied 16.8% compared with the industry’s 2.2% gain.
Oshkosh has an expected long-term growth rate of 14.5%. Shares of the company have surged 34.6% in the last six months.
Daimler has an expected long-term growth rate of 7.1%. In the last six months, shares of the company have climbed 32.2%.
Allison Transmission has an expected long-term growth rate of 2.8%. The stock has gained 6.2% in the last three months.
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Harley-Davidson (HOG) Q4 Earnings Beat Estimates, Up Y/Y
Harley-Davidson, Inc. (HOG - Free Report) reported adjusted earnings of 54 cents per share in fourth-quarter fiscal 2017, beating the Zacks Consensus Estimate of 46 cents. Earnings in the year-ago quarter were 27 cents.
Net income decreased to $8.3 million from $47.2 million, registered a year ago.
Motorcycle and related products revenues rose to $1.05 billion in the reported quarter compared with $933 million in the prior-year quarter. The figure surpassed the Zacks Consensus Estimate of $1.01 billion. The company also logged consolidated revenues of $1.23 billion, improving from the year-earlier period’s tally of $1.11 billion.
Harley-Davidson, Inc. Price, Consensus and EPS Surprise
Harley-Davidson, Inc. Price, Consensus and EPS Surprise | Harley-Davidson, Inc. Quote
Operating income increased to $101.5 million from $69.4 million in the year-ago period.
Fiscal 2017 Results
Harley-Davidson reported earnings of $3.02 per share in fiscal 2017, down from $3.83 earned in fiscal 2016. Also, earnings per share missed the Zacks Consensus Estimate of $3.41.
Net income fell to $521.8 million from $692.2 million recorded a year ago. Consolidated revenues declined to $5.65 billion from $6 billion in fiscal 2016. However, the figure also surpassed the Zacks Consensus Estimate of $4.88 billion.
Motorcycles and Related Products
Operating income from Motorcycles and Related Products rose to $37.8 million from $9.3 million, recorded a year ago.
During the quarter under review, revenues from Harley-Davidson motorcycles dropped 17% to $801.7 million. The company shipped 47,198 motorcycles to dealers and distributors worldwide during the fiscal fourth quarter under review compared with 42,414 shipments in fourth-quarter 2016.
Harley-Davidson’s worldwide retail sales of motorcycles fell 9.6% to 42,142 units from 46,610 motorcycles in the year-ago quarter.
Harley-Davidson’s retail motorcycle sales in the United States declined 11.1% to 23,195 units. International sales decreased 7.7% to 18,947 motorcycles from 20,533 in the prior-year quarter.
All the regions posted a sales decline from the previous-year quarter. While Canada witnessed a 4.9% gain, Latin America’s sales reduced 7.1%. Middle East and Africa (EMEA) region’s sales fell 5.5% while the Asia-Pacific region witnessed an 11.8% drop.
Revenues from Parts and Accessories slid 0.8% to $168 million. Similarly, the metric from General Merchandise — including MotorClothes apparel and accessories — dipped 2.3% to $71.2 million.
Harley-Davidson Financial Services (HDFS)
Revenues in the Financial Services segment rose 2.4% to $182 million in fourth-quarter 2017. Operating income improved 5.9% to $63.7 million from the year-ago figure of $60.1 million.
Financial Position
Harley-Davidson had cash and cash equivalents of $687.5 million as of Dec 31, 2017 compared with $760 million as of Dec 31, 2016. Long-term debt was lowered to $4.6 billion from $4.7 billion as of Dec 31, 2016.
For the fiscal year ending Dec 31, 2017, Harley-Davidson’s operating cash inflow declined to $1 billion from $1.2 billion a year-ago. Capital expenditures decreased to $206 million from $256 million in the preceding-year period.
Looking Forward
For fiscal 2018, Harley-Davidson expects full-year motorcycle shipments to be roughly within the range of 231,000-236,000 units, down from 241,498 units in fiscal 2017. Also, for the first quarter of fiscal 2018, the company expects motorcycle shipments to be approximately 60,000-65,000 units.
Moreover, for fiscal 2018, the company anticipates capital expenditures within $250-$270 million band in comparison to $206 million in fiscal 2017. Further, the operating margin is estimated at nearly 9.5-10.5% as compared to 12.5% in fiscal 2017.
Price Performance
In the last three months, shares of Harley-Davidson have outperformed the industry it belongs to. The stock has rallied 16.8% compared with the industry’s 2.2% gain.
Zacks Rank & Key Picks
Harley-Davidson carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , Daimler A.G. and Allison Transmission Holding, Inc. (ALSN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oshkosh has an expected long-term growth rate of 14.5%. Shares of the company have surged 34.6% in the last six months.
Daimler has an expected long-term growth rate of 7.1%. In the last six months, shares of the company have climbed 32.2%.
Allison Transmission has an expected long-term growth rate of 2.8%. The stock has gained 6.2% in the last three months.
Don’t Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>