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Harley-Davidson (HOG) Q2 Earnings Top Estimate, Revenue Miss
July 18, 2017

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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 stiff competition from competitors, including heavy discounts. Its sales have also declined in the U.S. Retail motorcycle segment. 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 second-quarter earnings estimate for Harley-Davidson inched down over the last 7 days. The company delivered three positive earnings surprises in the trailing four quarters and missed in one, with an average miss of 1.67%. Investors have been eagerly awaiting Harley-Davidson’s latest earnings report to see whether it outperforms this time.

Zacks Rank

Harley-Davidson currently has a Zacks Rank #4 (Sell). We have highlighted some of the key stats from this Wisconsin-based motorcycle manufacturer’s earnings announcement below:

Earnings Estimates

Harley-Davidson raked in earnings of $1.48 per share that surpassed the Zacks Consensus Estimate of $1.37. However, earnings were lower than $1.55 recorded in the year-ago quarter.

Revenues Estimates

Motorcycle and related products revenue declined to $1.58 billion in second-quarter 2017 from $1.67 billion in the year-ago quarter. The Zacks Consensus Estimate for revenue is $1.6 billion.

Harley-Davidson logged consolidated revenues of $1.77 billion, which deteriorated from $1.86 billion posted a year-ago.

Key Stats/Developments to Note

Harley-Davidson expects to ship 241,000 to 246,000 motorcycles worldwide in 2017, which is roughly 6-8% down from the 2016 figures.

In the third quarter of 2017, Harley-Davidson expects to ship 39,000 to 44,000 motorcycles.

Market Reaction

Harley-Davidson’s shares have fallen 8.4% in pre-market trading so far following the release. Clearly, the initial reaction to the report is negative.

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

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