American motorcycle manufacturing company Harley-Davidson (NYSE:HOG) will be reporting earnings tomorrow before market hours. Here’s what to expect.
Harley-Davidson missed analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $1.15 billion, down 25.7% year on year. It was a softer quarter for the company, with a miss of analysts’ adjusted operating income estimates. It reported 27,520 motorcycles sold, down 39.2% 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 32.1% year on year to $714.6 million, a further deceleration from the 7.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.66 per share.
Analysts covering the company have generally 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 three times over the last two years.
Looking at Harley-Davidson’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Malibu Boats’s revenues decreased 5.1% year on year, beating analysts’ expectations by 4.8%, and Brunswick reported a revenue decline of 15.2%, topping estimates by 11.3%. Malibu Boats’s stock price was unchanged after the results, while Brunswick was down 1.1%.
Read our full analysis of Malibu Boats’s results here and Brunswick’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Harley-Davidson is down 11.2% during the same time and is heading into earnings with an average analyst price target of $35.50 (compared to the current share price of $26.47).
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