LONDON, UK / ACCESSWIRE / February 12, 2018 / Active-Investors.com has just released a free earnings report on Harley-Davidson, Inc. (NYSE: HOG). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HOG. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 preliminary operating and financial results on January 30, 2018. The motorcycle Company reported better than expected quarterly sales and earnings results, and provided guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Harley-Davidson most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the three months ended December 31, 2017, Harley-Davidson reported consolidated revenues of $1.23 billion versus $1.11 billion in Q4 2016, reflecting a growth of 11% on a y-o-y basis, driven by higher shipments. The Company's revenue numbers exceeded analysts' expectations of $1.01 billion.
For the full year FY17, Harley-Davidson generated consolidated revenues of $5.65 billion versus $6.00 billion in FY16.
For Q4 2017, Harley-Davidson reported a net income of $8.3 million, or $0.05 per diluted share, compared to $47.2 million, or $0.27 per share, in Q4 2016. The Company's reported quarter earnings were adversely impacted by a $53.1 million income tax charge related to the enactment of the 2017 Tax Cuts and Jobs Act (TCJA), and a $29.4 million pre-tax charge for a voluntary product recall. Harley-Davidson's earnings, adjusted for pre-tax expenses and non-recurring costs, were $0.54 per share, and were ahead of Wall Street's estimates of $0.45 per share.
For FY17, Harley-Davidson reported a net income of $521.8 million, or $3.02 per share, compared to $692.2 million, or $3.83 per share, in FY16.
During Q4 2017, Harley-Davidson's worldwide retail motorcycle sales declined 9.6% to 42,142 units on a y-o-y basis compared to 46,160 in Q4 2016. The Company's US retail motorcycle sales were down 11.1% to 23,195 units on a y-o-y basis. Harley-Davidson' US market share was 50.8% in the 601+cc segment during Q4 2017.
Harley-Davidson's Motorcycle shipments advanced 11.3% to 41,198 units in Q4 2017 compared to 42,414 units in Q4 2016. The Company's revenue from motorcycles and related products advanced 17% to $801.73 million on a y-o-y basis, driven by higher motorcycle shipments. The segment's operating margin as a percentage of revenue increased 260 basis points to 3.6% in the reported quarter.
Harley-Davidson announced plans to further improve its manufacturing operations and cost structure by commencing a multi-year manufacturing optimization initiative. The Company will consolidate its motorcycle assembly plant in Kansas City, Missouri, into its plant in York, Pennsylvania. Harley-Davidson expects to incur restructuring and other consolidation costs of $170 million to $200 million, and capital investment of approximately $75 million over the next two years, and expects ongoing annual cash savings of $65 million to $75 million after 2020.
Harley-Davidson's cash and marketable securities were $687.5 million at the end of FY17 compared to $765.5 million at the end of FY16. The Company generated $1.01 billion of cash from operating activities in FY17 compared to $1.17 billion in FY16. On a discretionary basis, Harley-Davidson repurchased 8.7 million shares of its common stock at a cost of $456.1 million during FY17. At the end of 2017, the Company had 10.6 million shares remaining on a board-approved share repurchase authorization.
For FY18, Harley-Davidson is anticipating motorcycle shipments to be approximately 231,000 to 236,000 motorcycles. In Q1 2018, the Company is expecting to ship approximately 60,000 to 65,000 motorcycles.
Harley-Davidson expects operating margin as a percentage of revenue to be approximately 9.5% to 10.5% in FY18, including manufacturing optimization costs of $120 million to $140 million. The Company is anticipating capital expenditure of $250 million to $270 million in FY18, including approximately $50 million to support manufacturing optimization.
Harley-Davidson is estimating effective tax rate to be approximately 23.5% to 25.0% in FY18, down considerably behind effective tax rate of 39.6% in FY17 and 32.4% in FY16, attributed to the expected benefit of the new tax legislation.
Stock Performance Snapshot
February 09, 2018 - At Friday's closing bell, Harley-Davidson's stock marginally advanced 0.61%, ending the trading session at $47.83.
Volume traded for the day: 3.50 million shares, which was above the 3-month average volume of 2.64 million shares.
Stock performance in the previous three-month period – up 5.10%; and past six-month period – up 1.08%
After last Friday's close, Harley-Davidson's market cap was at $8.12 billion.
Price to Earnings (P/E) ratio was at 16.06.
The stock has a dividend yield of 3.09%.
The stock is part of the Consumer Goods sector, categorized under the Recreational Vehicles industry. This sector was up 0.5% at the end of the session.
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