American motorcycle manufacturing company Harley-Davidson (NYSE: HOG) will be reporting earnings this Thursday before market open. Here’s what to look for.
Harley-Davidson beat analysts’ revenue expectations last quarter, reporting revenues of $1.23 billion, down 5.9% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates. It reported 39,200 motorcycles sold, up 9.5% year on year.
Is Harley-Davidson a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Harley-Davidson’s revenue to decline 20.2% year on year, a reversal from the 16.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Harley-Davidson has a history of exceeding Wall Street’s expectations.
Looking at Harley-Davidson’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Hasbro delivered year-on-year revenue growth of 15%, beating analysts’ expectations by 7.9%, and Levi's reported revenues up 4.3%, in line with consensus estimates. Hasbro traded up 15.7% following the results while Levi's was down 2.4%.
Read our full analysis of Hasbro’s results here and Levi’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 up 17.9% during the same time and is heading into earnings with an average analyst price target of $28.10 (compared to the current share price of $29.09).
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