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.
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 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.
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.
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.
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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