Harley-Davidson Quarterly Earnings on the Horizon

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S&P 500 (NYSE:SPY) component Harley-Davidson (NYSE:HOG) will unveil its latest earnings tomorrow, Wednesday, August 1, 2012. Harley-Davidson manufactures heavyweight motorcycles as well as motorcycle parts and accessories.

Harley-Davidson Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.05 per share, a rise of 29.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.06. Between one and three months ago, the average estimate moved up. It has dropped from $1.07 during the last month. Analysts are projecting profit to rise by 20.2% compared to last year’s $2.80.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at net income of 74 cents a share versus the estimate of profit of 71 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit rose 44.3% to $172 million (74 cents a share) from $119.3 million (51 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4% to $1.27 billion from $1.22 billion.

Wall St. Revenue Expectations: On average, analysts predict $1.63 billion in revenue this quarter, a rise of 21.6% from the year-ago quarter. Analysts are forecasting total revenue of $5.05 billion for the year, a rise of 8.4% from last year’s revenue of $4.66 billion.

Stock Price Performance: Between May 1, 2012 and July 30, 2012, the stock price fell $7.84 (-14.98%), from $52.33 to $44.49. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 14, 2012, when shares rose for seven straight days, increasing 10.3% (+$4.64) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 10.7% (-$5.40) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 15% in the second quarter of the last fiscal year, 10.9% in the third quarter of the last fiscal year and 9.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.75 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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