Harley-Davidson Beats on Revenue, Matches Expectations on EPS

Harley-Davidson (NYSE: HOG  ) reported earnings on Jan. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Harley-Davidson beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share contracted significantly.

Gross margins grew, operating margins grew, net margins shrank.

Revenue details
Harley-Davidson logged revenue of $1.01 billion. The 12 analysts polled by S&P Capital IQ looked for a top line of $976.4 million on the same basis. GAAP reported sales were 1.1% lower than the prior-year quarter's $1.18 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 $0.31. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.31 per share. GAAP EPS of $0.31 for Q4 were 33% lower than the prior-year quarter's $0.46 per share. (The prior-year quarter included $0.22 per share in earnings from discontinued operations.)

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 32.9%, 100 basis points better than the prior-year quarter. Operating margin was 10.1%, 70 basis points better than the prior-year quarter. Net margin was 6.0%, 290 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.31 billion. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $5.29 billion. The average EPS estimate is $3.37.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,452 members out of 1,853 rating the stock outperform, and 401 members rating it underperform. Among 516 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 449 give Harley-Davidson a green thumbs-up, and 67 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 $53.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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10/1/2014 4:04 PM
HOG $57.64 Down -0.56 -0.96%
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