Stock Story -
American motorcycle manufacturing company Harley-Davidson (NYSE:HOG) will be reporting results tomorrow before market open. Here's what to look for.
Harley-Davidson beat analysts' revenue expectations last quarter, reporting revenues of $1.73 billion, down 3.3% year on year. It was an impressive quarter for the company, with a decent beat of analysts' earnings estimates.
Is Harley-Davidson a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Harley-Davidson's revenue to decline 12% year on year to $1.27 billion, a further deceleration from the 1.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.40 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 a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 21.3% on average.
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. Carnival (NYSE:CCL) delivered year-on-year revenue growth of 17.7%, beating analysts' expectations by 1.9%, and Levi's reported revenues up 7.8%, in line with consensus estimates. Carnival traded up 12% following the results while Levi's was down 15.7%.
Read the full analysis of Carnival's and Levi's results on StockStory.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.8% on average over the last month. Harley-Davidson is up 4.4% during the same time and is heading into earnings with an average analyst price target of $41.8 (compared to the current share price of $34.64).
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