American motorcycle manufacturing company Harley-Davidson (NYSE: HOG) will be announcing earnings results this Tuesday before market open. Here’s what to expect.
Harley-Davidson beat analysts’ revenue expectations last quarter, reporting revenues of $496.2 million, down 27.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates. It reported 13,500 motorcycles sold, down 3.6% 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 25% year on year, a further deceleration from the 23.1% decrease it recorded in the same quarter last year.
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 a history of exceeding Wall Street’s expectations.
Looking at Harley-Davidson’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Brunswick delivered year-on-year revenue growth of 12.8%, beating analysts’ expectations by 4.1%, and Rush Street Interactive reported revenues up 41.1%, topping estimates by 11.3%. Brunswick’s stock price was unchanged after the resultswhile Rush Street Interactive was up 16.6%.
Read our full analysis of Brunswick’s results here and Rush Street Interactive’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 7% on average over the last month. Harley-Davidson is up 15.9% during the same time and is heading into earnings with an average analyst price target of $22.14 (compared to the current share price of $24.34).
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