Markets
HOG

Harley-Davidson's (HOG) Q3 Earnings Miss Estimates, Shares Down

Harley-Davidson Inc. HOG is the world's leading designer and manufacturer of heavyweight motorcycles and related products and merchandise. The company is expanding its product portfolio to increase its customer base. Operating income of the Financial Services segment has also finally started improving after declines in the last two years.

However, lower shipments and unfavorable foreign currency exchange resulted in a fall in consolidated revenues in the first half of 2015. An aging customer base and an expensive product range are also concerns for the company.

Estimate Trend & Surprise History

Investors should note that the third-quarter earnings estimate for Harley-Davidson have been stable over the last 30 days. Further, the company has a track record of delivering positive earnings surprises. It has beaten the Zacks Consensus Estimate in each of the trailing 4 quarters with an average beat of 6.77%. Investors have been eagerly awaiting Harley-Davidson's latest earnings report to see whether it outperforms this time as well.

Zacks Rank

Harley-Davidson currently has a Zacks Rank #4 (Sell), but that could change following its earnings report which was just released. We have highlighted some of the key stats from this Wisconsin-based motorcycle manufacturer's earnings announcement below:

Earnings Misses Estimates

Harley-Davidson raked in earnings of 69 cents per share that missed the Zacks Consensus Estimate of 78 cents. However, earnings were in line with the year-ago quarter.

Revenues Top Estimates

Harley-Davidson logged revenues of $1.32 billion, beating the Zacks Consensus Estimate of $1.21 billion. Revenues improved from $1.30 billion posted a year-ago.

Key Stats/Developments to Note

Harley-Davidson reduced its guidance for motorcycle shipments in 2015 to 265,000-270,000 units from 276,000-281,000 units guided earlier. This means that shipments are expected to be stable at the year-ago level or decline up to 2% year over year.

In the fourth quarter of 2015, Harley-Davidson expects to ship 47,000-52,000 motorcycles, compared with 47,157 motorcycles shipped in the year-ago period.

Market Reaction

Harley-Davidson's share price declined 6.2% in pre-market trading following the release. Clearly, the initial reaction to the release is negative.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

HARLEY-DAVIDSON (HOG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

HOG

Other Topics

Earnings Investing Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More