Earnings Preview: Harley-Davidson

Jan.24.11 | About: Harley-Davidson, Inc. (HOG)

Harley-Davidson (NYSE:HOG) is expected to report Q4 earnings before the market open on Tuesday, January 25 with a conference call scheduled for 9 am ET.


Analysts are looking for a loss of (30c) on revenue of $863.03M. The consensus range is (39c)-(17c) for EPS, and revenue of $807.95M-$895M, according to First Call. In October, Harley-Davidson narrowed its 2010 shipments view to 207,000-212,000 and cut its CapEx view to $190M-$210M due to lower costs for restructuring. The company said it was gaining market share with riders ages 18-24 and said the economy had yet to turn around in a "convincing way".

Analyst Views

In November, UBS said Harley's November retail sales were in-line with the industry, down 18% year-over-year. In December, Harley reached an agreement with its exclusive dealer in Brazil, HDSP/Grupo Izzo, that will enable the company to expand its presence and its network of dealerships in Brazil in the future.Rumors have been swirling for well over a year that Harley will be taken over, perhaps by a private equity company, but Barrons.com said the good news about Harley-Davidson is already in the stock. Wells Fargo sees several positive catalysts for the company in 2011.