Harley-Davidson
The 10-second takeaway
For the quarter ended July 1 (Q2), Harley-Davidson missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins improved, and net margins grew.
Revenue details
Harley-Davidson chalked up revenue of $1.57 billion. The 13 analysts polled by S&P Capital IQ looked for a top line of $1.63 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.51 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.07. The 16 earnings estimates compiled by S&P Capital IQ averaged $1.05 per share. GAAP EPS of $1.07 for Q2 were 32% higher than the prior-year quarter's $0.81 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 37.3%, 150 basis points worse than the prior-year quarter. Operating margin was 23.0%, 200 basis points better than the prior-year quarter. Net margin was 14.3%, 160 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $5.05 billion. The average EPS estimate is $2.80.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,453 members rating the stock outperform and 402 members rating it underperform. Among 490 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 411 give Harley-Davidson a green thumbs-up, and 79 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harley-Davidson is outperform, with an average price target of $56.00.
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