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Harley-Davidson (HOG) to Post Q1 Earnings: What's in Store?
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Harley-Davidson, Inc. (HOG - Free Report) is set to beat earnings estimates when it releases first-quarter 2020 results on Apr 28, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 50 cents per share on revenues of $1.07 billion.
The American motorcycle manufacturer delivered better-than-expected results in the last reported quarter on solid motorcycle sales in the Asia-Pacific region. Harley-Davidson beat estimates in each of the trailing four quarters, the average positive surprise being 27%. This is depicted in the graph below:
Hit by the coronavirus crisis, the Zacks Consensus Estimate for Harley-Davidson’s first-quarter earnings per share has been revised downward by two cents to 50 cents in the past seven days. The figure also indicates a year-over-year plunge of 37.5%. The Zacks Consensus Estimate for revenues suggests a year-over-year decrease of 10.78%.
Key Factors
Harley-Davidson’s efforts to launch lighter motorcycles and bolster its dealer networks are likely to have positively impacted the company’s first-quarter performance. Along with adding dealerships globally, launching dealer digital programs and lead-management tools is likely to have aided the company’s quarterly performance.
However, the motorcycle maker is expected to have faced a decline in sales volumes amid industry headwinds. Heightening coronavirus fears, especially in March, are likely to have thwarted vehicle demand. The coronavirus crisis is expected to have hurt Harley-Davidson’s sales due to factory closures and production shutdowns.
The Zacks Consensus Estimate for total motorcycle shipments is pegged at 56,517 units, suggesting a year-over-year decline of 4.03%. Further, the Zacks Consensus Estimate of revenues from motorcycle and related products is pegged at $1.13 billion, indicating a year-over-year decline of 5.52%.
The Zacks Consensus Estimate for total worldwide retail sales is pegged at 46,746 units, calling for a 4.9% decrease on a year-over-year basis. The consensus estimate for first-quarter sales in the U.S. and EMEA market is pegged at 26,125 and 10,265 units, indicating a year-over-year decline of 7% and 4.9%, respectively. Meanwhile, sales from the Asia Pacific market are estimated to be 6,136 units, suggesting an improvement from the year-ago quarter’s 6,074 units.
Notably, Harley-Davidson’s elevated SG&A costs and rising competition are expected to have clipped margins in the March-end quarter. It is facing competition from small brands, along with foreign bike makers, that are resorting to competitive pricing. This might have hurt the company’s margins in first-quarter 2020.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Harle-Davidson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Harley-Davidson has an Earnings ESP of -7.29%. This is because the Most Accurate Estimate of 46 cents per share comes in 4 cents lower than the Zacks Consensus Estimate. 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 5 (Strong Sell) currently.
Stocks to Consider
Here are a few stocks worth considering, as these have the right combination of elements to come up with an earnings beat this time around:
Anthem, Inc. has an Earnings ESP of +1.28% and carries a Zacks Rank #3 currently. The company is slated to release first-quarter 2020 earnings on Apr 29.
The Allstate Corporation (ALL - Free Report) is set to report quarterly numbers on May 6. The company has an Earnings ESP of +2.45% and holds a Zacks Rank of 3, at present.
Cigna Corporation (CI - Free Report) is scheduled to release earnings figures on Apr 30. The stock has an Earnings ESP of +1.53% and currently carries a Zacks Rank #2.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Harley-Davidson (HOG) to Post Q1 Earnings: What's in Store?
Harley-Davidson, Inc. (HOG - Free Report) is set to beat earnings estimates when it releases first-quarter 2020 results on Apr 28, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 50 cents per share on revenues of $1.07 billion.
The American motorcycle manufacturer delivered better-than-expected results in the last reported quarter on solid motorcycle sales in the Asia-Pacific region. Harley-Davidson beat estimates in each of the trailing four quarters, the average positive surprise being 27%. This is depicted in the graph below:
Harley-Davidson, Inc. Price and Consensus
Harley-Davidson, Inc. price-consensus-chart | Harley-Davidson, Inc. Quote
Which Way are the Estimates Treading?
Hit by the coronavirus crisis, the Zacks Consensus Estimate for Harley-Davidson’s first-quarter earnings per share has been revised downward by two cents to 50 cents in the past seven days. The figure also indicates a year-over-year plunge of 37.5%. The Zacks Consensus Estimate for revenues suggests a year-over-year decrease of 10.78%.
Key Factors
Harley-Davidson’s efforts to launch lighter motorcycles and bolster its dealer networks are likely to have positively impacted the company’s first-quarter performance. Along with adding dealerships globally, launching dealer digital programs and lead-management tools is likely to have aided the company’s quarterly performance.
However, the motorcycle maker is expected to have faced a decline in sales volumes amid industry headwinds. Heightening coronavirus fears, especially in March, are likely to have thwarted vehicle demand. The coronavirus crisis is expected to have hurt Harley-Davidson’s sales due to factory closures and production shutdowns.
The Zacks Consensus Estimate for total motorcycle shipments is pegged at 56,517 units, suggesting a year-over-year decline of 4.03%. Further, the Zacks Consensus Estimate of revenues from motorcycle and related products is pegged at $1.13 billion, indicating a year-over-year decline of 5.52%.
The Zacks Consensus Estimate for total worldwide retail sales is pegged at 46,746 units, calling for a 4.9% decrease on a year-over-year basis. The consensus estimate for first-quarter sales in the U.S. and EMEA market is pegged at 26,125 and 10,265 units, indicating a year-over-year decline of 7% and 4.9%, respectively. Meanwhile, sales from the Asia Pacific market are estimated to be 6,136 units, suggesting an improvement from the year-ago quarter’s 6,074 units.
Notably, Harley-Davidson’s elevated SG&A costs and rising competition are expected to have clipped margins in the March-end quarter. It is facing competition from small brands, along with foreign bike makers, that are resorting to competitive pricing. This might have hurt the company’s margins in first-quarter 2020.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Harle-Davidson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Harley-Davidson has an Earnings ESP of -7.29%. This is because the Most Accurate Estimate of 46 cents per share comes in 4 cents lower than the Zacks Consensus Estimate. 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 5 (Strong Sell) currently.
Stocks to Consider
Here are a few stocks worth considering, as these have the right combination of elements to come up with an earnings beat this time around:
Anthem, Inc. has an Earnings ESP of +1.28% and carries a Zacks Rank #3 currently. The company is slated to release first-quarter 2020 earnings on Apr 29.
The Allstate Corporation (ALL - Free Report) is set to report quarterly numbers on May 6. The company has an Earnings ESP of +2.45% and holds a Zacks Rank of 3, at present.
Cigna Corporation (CI - Free Report) is scheduled to release earnings figures on Apr 30. The stock has an Earnings ESP of +1.53% and currently carries a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>