Harley-Davidson Beats on Both Top and Bottom Lines

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Harley-Davidson (NYS: HOG) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 1 (Q1), Harley-Davidson beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.


Gross margins contracted, operating margins grew, net margins improved.

Revenue details
Harley-Davidson booked revenue of $1.27 billion. The 12 analysts polled by S&P Capital IQ wanted to see sales of $1.22 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $1.22 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.74. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.72 per share. GAAP EPS of $0.74 for Q1 were 45% higher than the prior-year quarter's $0.51 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.6%, 10 basis points worse than the prior-year quarter. Operating margin was 20.1%, 250 basis points better than the prior-year quarter. Net margin was 12.0%, 230 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.36 billion. On the bottom line, the average EPS estimate is $0.73.

Next year's average estimate for revenue is $4.98 billion. The average EPS estimate is $2.72.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,452 members out of 1,860 rating the stock outperform, and 408 members rating it underperform. Among 520 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 456 give Harley-Davidson a green thumbs-up, and 64 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harley-Davidson is outperform, with an average price target of $49.67.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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