Harley-Davidson Revs Up for Earnings as Demand Declines
Kristina Barker/For The Washington Post via Getty
Investors will be watching closely to see if Harley-Davidson's (HOG) - Get Report bid to reinvent itself is roaring ahead or in danger of sputtering when the iconic motorcycle maker reports its quarterly earnings Tuesday.
With demand in the United States for its classic Hogs on the decline, investors will look for signs that Harley-Davidson is gaining traction in its efforts to boost global sales with a line-up of lighter and more modern motorcycles.
Harley-Davidson last year rolled out its first electric motorcycle, LiveWire, even as U.S. sales of its iconic Hogs dropped 10% to 229,000.
The motorcycle maker also recently announced a deal with Electrify America to boost the number of charging stations across the country.
"At Harley-Davidson, we are taking significant steps to lead in the electrification of motorcycling, including supporting the development of global charging infrastructure," said Luke Mansfield, vice president and chief strategy officer for Harley-Davidson Motor Company, in a statement.
Harley-Davidson posted an earnings surprise of more than 19% in the last quarter, and has beat earnings estimates twice in the last four quarters, according Zacks Investment Research.
However, Zacks is betting if there is an earnings surprise from Harley-Davidson on Tuesday it will fall on the negative side of the ledger.
Over the past year, Harley Davidson, on average, has posted a negative earnings surprise of 12.98%.
Zacks predicts more of the same when Harley-Davidson reports its earnings before the opening bell on Tuesday, projecting a negative earnings surprise of 4.06%.
Shares of Harley-Davidson were down 0.57% on Monday to $34.65. The motorcycle manufacturer's stock price has fallen significantly since mid-September, 2018, when it was trading in the $45 a share range.