Harley-Davidson Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Harley-Davidson (NYSE:HOG) will unveil its latest earnings on Tuesday, October 23, 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 estimate of analysts is for net income of 58 cents per share, a decline of 25.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 61 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 58 cents during the last month. Analysts are projecting profit to rise by 18.9% versus last year to $2.77.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting profit of $1.07 per share against a mean estimate of net income of $1.05 per share.

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A Look Back: In the second quarter, profit rose 29.7% to $247.3 million ($1.07 a share) from $190.6 million (81 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.2% to $1.57 billion from $1.51 billion.

Wall St. Revenue Expectations: Analysts predict a decline of 8.9% in revenue from the year-earlier quarter to $1.12 billion.

Stock Price Performance: Between October 11, 2012 and October 17, 2012, the stock price rose $2.21 (5.3%), from $41.79 to $44. The stock price saw one of its best stretches over the last year between September 5, 2012 and September 17, 2012, when shares rose for nine straight days, increasing 11.4% (+$4.73) 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 10.9% in the third quarter of the last fiscal year, 9.3% in the fourth quarter of the last fiscal year and 4% in the first quarter before increasing again in the second quarter.

Analyst Ratings: There are 11 out of 15 analysts surveyed (73.3%) rating Harley-Davidson a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.6 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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