U.S. markets closed
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • Dow 30

    30,932.37
    -469.64 (-1.50%)
     
  • Nasdaq

    13,192.35
    +72.92 (+0.56%)
     
  • Russell 2000

    2,201.05
    +0.88 (+0.04%)
     
  • Crude Oil

    61.66
    -1.87 (-2.94%)
     
  • Gold

    1,733.00
    -42.40 (-2.39%)
     
  • Silver

    26.70
    -0.98 (-3.56%)
     
  • EUR/USD

    1.2088
    -0.0099 (-0.81%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • GBP/USD

    1.3922
    -0.0091 (-0.65%)
     
  • USD/JPY

    106.5500
    +0.3200 (+0.30%)
     
  • BTC-USD

    44,879.34
    -2,298.78 (-4.87%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

Post Earnings Coverage as Harley-Davidson's Quarterly EPS Surpassed Estimates

Upcoming AWS Coverage on Polaris Industries Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 24, 2017 / Active Wall St. announces its post-earnings coverage on Harley-Davidson, Inc. (NYSE: HOG). The Company posted its first quarter fiscal 2017 results on April 18, 2017. The motorcycle maker reported a y-o-y decline in sales and earnings. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Harley-Davidson's competitors within the Recreational Vehicles space, Polaris Industries Inc. (NYSE: PII), announced on March 27, 2017, that it will release its Q1 2017 financial results on Tuesday, April 25, 2017, and will hold a webcast and conference call at 9:00 a.m. CT on the same day to discuss the results. AWS will be initiating a research report on Polaris Industries in the coming days.

Today, AWS is promoting its earnings coverage on HOG; touching on PII. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the three months ended March 26, 2017, Harley-Davidson reported revenue of $1.33 billion, down from $1.58 billion in Q1 FY16. The Company's revenue numbers came in below analysts' consensus of $1.37 billion.

For Q1 FY17, Harley-Davidson reported net income of $186.4 million, or $1.05 per share, compared to net income of $250.5 million, or $1.36 per share, in the year-earlier same period. The Company's earnings surpassed Wall Street's forecasts of $1.02 per share.

"First quarter US retail sales were in line with our projections and we remain confident in our full-year plan despite international retail sales being down in the first quarter," said Matt Levatich, CEO, Harley-Davidson, "We are very pleased with our continued growth in US market share and the progress our US dealers made in reducing their inventory of 2016 motorcycles in the quarter."

Motorcycle Sales Details

For Q1 FY17, worldwide Harley-Davidson retail motorcycle sales declined 4.2% to 55, 049 units compared to motorcycle sales of 57,458 units in Q1 FY16. In-line with the Company's expectations, Harley-Davidson retail motorcycle sales in the US declined 5.7% on a y-o-y basis to 33,316 units. US retail sales were adversely impacted by weak industry sales and limited availability of model year 2017 motorcycles, partially offset by strong sales of the Company's Milwaukee-Eight touring bikes and its focus on growing ridership. Harley-Davidson's US market share for the reported quarter was 51.3% in the 601cc-plus segment, up compared to Q1 FY16.

For Q1 FY17, Harley-Davidson's international retail sales totaled 21,733, down 1.8% compared to Q1 FY16 sales of 22,132 units. The Company's International retail sales were below its expectations driven by weak sales in Asia/Pacific, partially offset by strong growth in Latin America. In Asia/Pacific, Q1 retail sales were down 9.3% from last year. Sales were adversely impacted by softness in the Company's emerging markets and in Japan. Harley-Davidson's sales in India continue to be down in the high double digits due in large part to the continued impact of last quarter's demonetization Harley-Davidson expects Asia/Pacific region to return to growth in the back half of 2017, largely behind expanded distribution, the introduction of the new Street Rod and increased marketing spending for the remainder of the year. Retail sales in Latin America were up 24.2% in Q1 compared to the year-ago decline of 26.5%.

Harley-Davidson's average motorcycle revenue per unit was down $342 for Q1 FY17 as the Company shipped fewer touring bikes, partially offset by the impact of higher pricing. Parts and Accessories and General Merchandise revenues were down for the quarter due in large part to lower motorcycle shipments and lower retail motorcycle sales.

Financial Details

As of March 26, 2017, Harley-Davidson's cash and marketable securities totaled $844.7 million compared to $739.1 million in the year ago comparable period. Harley-Davidson generated $159.9 million of cash from operating activities in the reported quarter compared to $41.1 million in the year earlier same quarter. The Company paid a cash dividend of $0.365 per share for Q1 FY17, up 4.3% on a y-o-y basis. On a discretionary basis, the Company repurchased 1.2 million shares of its common stock during the reported quarter for $70.9 million. At the end of the first quarter, 18.0 million shares remained on a board-approved share repurchase authorization.

Guidance

For FY17, Harley-Davidson continues to anticipate full-year motorcycle shipments to be flat to down modestly in comparison to 2016. In Q2 FY17, the Company expects to ship approximately 80,000 to 85,000 motorcycles. Harley-Davidson continues to expect full-year 2017 operating and gross margin as a percent of revenue to be approximately in-line with 2016.

The Company continues to expect that full-year 2017 capital expenditures to be in the range of $200 million to $220 million.

Stock Performance

Harley-Davidson's share price finished last Friday's trading session at $55.81, sliding 1.17%. A total volume of 2.91 million shares exchanged hands, which was higher than the 3 months average volume of 2.20 million shares. The stock has rallied 3.18% and 19.35% in the last six months and past twelve months, respectively. The stock is trading at a PE ratio of 15.94 and has a dividend yield of 2.62%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street