American motorcycle manufacturing company Harley-Davidson (NYSE:HOG) will be reporting results this Wednesday morning. Here’s what investors should know.
Harley-Davidson missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.33 billion, down 23.1% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates. It reported 38,601 motorcycles sold, down 33.1% year on year.
Is Harley-Davidson a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Harley-Davidson’s revenue to decline 15.3% year on year to $1.37 billion, a reversal from the 12% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.93 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Harley-Davidson has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Harley-Davidson’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Brunswick posted flat year-on-year revenue, beating analysts’ expectations by 16.4%, and Hasbro reported a revenue decline of 1.5%, topping estimates by 11.2%. Brunswick traded down 6% following the results while Hasbro was also down 3.3%.
Read our full analysis of Brunswick’s results here and Hasbro’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.6% on average over the last month. Harley-Davidson’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $28.89 (compared to the current share price of $23.70).
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