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.
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 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.
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.
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.
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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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 positions in the stocks mentioned above. 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.