|Bid||0.00 x 800|
|Ask||0.00 x 2900|
|Day's Range||38.27 - 39.52|
|52 Week Range||38.27 - 56.50|
|Beta (3Y Monthly)||0.70|
|PE Ratio (TTM)||13.25|
|Earnings Date||Oct 23, 2018|
|Forward Dividend & Yield||1.48 (3.74%)|
|1y Target Est||46.21|
The stock market logged a mixed close on Monday ahead of key earnings report due out Tuesday before the market open, notably results from Caterpillar.
The motorcycle maker is expected to report gains in revenue and profits over 2017’s very weak performance. But Wall Street isn’t convinced the numbers will show it’s pulling of a prolonged skid.
Strong job market boosts consumer demand, thus, driving auto sales. However, increased recall and tariff costs are creating headwinds.
A boycott of Harley-Davidson encouraged by President Trump seems to be having a significant impact on the iconic motorcycle manufacturer.
Harley-Davidson sales continue to falter after a rough first half in which it lost share to Indian, its main U.S.-based competitor, according to BMO Capital Markets. Harley engaged in a public spat with Trump a few months ago when it said it was shifting some production overseas in response to retaliatory tariffs from abroad. "It should be disconcerting to HOG investors that most Indian dealers we speak with are seeing an uptick in Harley trade-ins for whatever the reason may be," BMO says.
Alta has yet to comment on the situation. “As of this morning I no longer represent Alta Motors so I’m not in a position to speak on it,” a former Alta Motors spokesperson told TechCrunch on background when asked about the shutdown. Alta’s head office has not respond to requests for comment.
In the previous part of this series, we looked at Harley-Davidson’s (HOG) valuation multiples, which are trading higher than Japanese motorcycle and car manufacturer Honda (HMC). While valuation multiples can help investors make better investment decisions, it’s also important to be aware of key technical levels to refine a stock’s entry and exit.
As of October 16, Harley-Davidson’s forward EV-to-EBITDA multiple was 11.9x. Three months ago, it was 12.3x. The multiple is based on its estimated EBITDA for the next 12 months.
In the previous part of this series, we saw that analysts are expecting Harley-Davidson’s (HOG) third-quarter revenue to improve year-over-year. Despite weak US sales, expectations of improvement in international sales could be the main reasons for the positive estimates. Now let’s explore analysts’ estimates for Harley-Davidson’s profit margins for the third quarter.
In the second quarter, Harley-Davidson’s (HOG) total revenue from all segments fell 2.9% YoY (year-over-year) to $1.71 billion. That included a ~4% YoY decline in revenue for its motorcycle segment to $1.2 billion. In the second quarter, its global motorcycle shipments fell 11.3% to 72,593 units compared to 81,807 units shipped in the second quarter of 2017.
In the previous part of this series, we saw that Harley-Davidson (HOG) stock is underperforming the broader market in the fourth quarter. Year-to-date, Ford (F) and General Motors (GM) have fallen 28.7% and 21.1%, respectively while Ferrari (RACE) has risen 16.1%. In the second quarter, Harley-Davidson reported adjusted EPS of $1.45.
Harley-Davidson (HOG) is expected to release its third-quarter earnings on October 23. It’s one of the most popular heavyweight motorcycle brands in the world. Before we find out what investors could expect from its upcoming earnings, let’s see how Harley-Davidson stock is trading before its third-quarter earnings release.