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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 set to report fourth-quarter and 2018 results on Jan 29, before the opening bell. In the last reported quarter, it delivered a positive earnings surprise of 41.7%. The long-term growth rate of Milwaukee, WI-based motorcycle manufacturer is 8%.
In the past month, shares of Harley-Davidson have outperformed the industry it belongs to. The stock gained 13% compared with the industry’s 10.6% increase.
Let’s see, how things shaped up for the upcoming announcement.
Our proven model shows that Harley-Davidson is likely to beat earnings estimates in this quarter. This is because a stock needs to have the right combination of two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for increasing the odds of an earnings beat.
Earnings ESP: Harley-Davidson has an Earnings ESP of +14.46% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 19 cents and 17 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Harley-Davidson currently carries a Zacks Rank #3.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
What’s Driving Better-Than-Expected Earnings?
Harley-Davidson has been developing new products to widen its product portfolio and attract new riders while maintaining old ones. Apart from its existing heavy-weight portfolio, this motorcycle manufacturer will launch motorcycles under mid-weight (500cc to 1250cc) and light-weight (250cc to 500cc) categories by 2020.
Additionally, the company will launch its first electric motorcycle, LiveWire, in 2019. Adding several motorcycle models will aid Harley-Davidson to regain its market position in North America and help it expand in international markets.
Except for investing in technology, this motorcycle manufacturer is focusing on improving its marketing and sales support. In last October, the company went online with its range of merchandised products through Amazon. It also believes in having a strong dealership network. In the third quarter, it added 9 dealers in international markets.
Despite having a solid presence in the market, high tariff-related costs might hurt Harley-Davidson’s bottom line in fourth-quarter 2018. Tariff charges on raw materials, imports to Europe from the United States and a safety recall in October for a few models are expected to affect results.
For fourth-quarter 2018, the Zacks Consensus Estimate for total revenues of Harley-Davidson’s Financial Services, and Motorcycles and Related Products segments are $186 million and $1.06 billion, respectively. The consensus estimate for the quarter’s total motorcycle shipment is pegged at 46,476 units.
Other Stocks to Consider
Here are a few other stocks from the same space, with the right combination of elements to outpace earnings estimates this time around:
Oshkosh Corporation (OSK - Free Report) has an Earnings ESP of +18.52% and a Zacks Rank of 3. The company is slated to report fourth-quarter 2018 results on Jan 30.
General Motors Company (GM - Free Report) has an Earnings ESP of +11.39% and it currently sports a Zacks Rank #1. Its fourth-quarter 2018 results are scheduled to release on Feb 6.
Wabco Holdings Inc. has an Earnings ESP of +2.81% and is a #3 Ranked player. Its fourth-quarter 2018 results are slated to release on Feb 15.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Is a Beat in Store for Harley-Davidson (HOG) in Q4 Earnings?
Harley-Davidson, Inc. (HOG - Free Report) is set to report fourth-quarter and 2018 results on Jan 29, before the opening bell. In the last reported quarter, it delivered a positive earnings surprise of 41.7%. The long-term growth rate of Milwaukee, WI-based motorcycle manufacturer is 8%.
In the past month, shares of Harley-Davidson have outperformed the industry it belongs to. The stock gained 13% compared with the industry’s 10.6% increase.
Let’s see, how things shaped up for the upcoming announcement.
Harley-Davidson, Inc. Price and EPS Surprise
Harley-Davidson, Inc. Price and EPS Surprise | Harley-Davidson, Inc. Quote
Why Likely a Positive Surprise This Quarter
Our proven model shows that Harley-Davidson is likely to beat earnings estimates in this quarter. This is because a stock needs to have the right combination of two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for increasing the odds of an earnings beat.
Earnings ESP: Harley-Davidson has an Earnings ESP of +14.46% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 19 cents and 17 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Harley-Davidson currently carries a Zacks Rank #3.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
What’s Driving Better-Than-Expected Earnings?
Harley-Davidson has been developing new products to widen its product portfolio and attract new riders while maintaining old ones. Apart from its existing heavy-weight portfolio, this motorcycle manufacturer will launch motorcycles under mid-weight (500cc to 1250cc) and light-weight (250cc to 500cc) categories by 2020.
Additionally, the company will launch its first electric motorcycle, LiveWire, in 2019. Adding several motorcycle models will aid Harley-Davidson to regain its market position in North America and help it expand in international markets.
Except for investing in technology, this motorcycle manufacturer is focusing on improving its marketing and sales support. In last October, the company went online with its range of merchandised products through Amazon. It also believes in having a strong dealership network. In the third quarter, it added 9 dealers in international markets.
Despite having a solid presence in the market, high tariff-related costs might hurt Harley-Davidson’s bottom line in fourth-quarter 2018. Tariff charges on raw materials, imports to Europe from the United States and a safety recall in October for a few models are expected to affect results.
For fourth-quarter 2018, the Zacks Consensus Estimate for total revenues of Harley-Davidson’s Financial Services, and Motorcycles and Related Products segments are $186 million and $1.06 billion, respectively. The consensus estimate for the quarter’s total motorcycle shipment is pegged at 46,476 units.
Other Stocks to Consider
Here are a few other stocks from the same space, with the right combination of elements to outpace earnings estimates this time around:
Oshkosh Corporation (OSK - Free Report) has an Earnings ESP of +18.52% and a Zacks Rank of 3. The company is slated to report fourth-quarter 2018 results on Jan 30.
You can see the complete list of today’s Zacks #1 Rank stocks here.
General Motors Company (GM - Free Report) has an Earnings ESP of +11.39% and it currently sports a Zacks Rank #1. Its fourth-quarter 2018 results are scheduled to release on Feb 6.
Wabco Holdings Inc. has an Earnings ESP of +2.81% and is a #3 Ranked player. Its fourth-quarter 2018 results are slated to release on Feb 15.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>