How Is Harley-Davidson Stock Trading before Its 4Q17 Earnings?


Jan. 25 2018, Updated 8:57 a.m. ET

Harley-Davidson’s 4Q17 earnings

Harley-Davidson (HOG) is set to release its 4Q17 earnings on January 30, 2018.

HOG is one of the most popular heavyweight motorcycle brands in the world. Before we find out what investors can expect from its upcoming earnings, let’s review how Harley-Davidson stock performed in the fourth quarter last year.

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Harley’s stock in 4Q17

In 4Q17, the broader market (QQQ) traded on a positive note for the ninth consecutive quarter. These positive sentiments may have been driven by the improving labor market, strong consumer sentiments, and better-than-expected 3Q17 earnings for the majority of companies. The S&P 500 Index (SPY) (SPX-INDEX) ended the quarter with a 6.1% positive return.

Meanwhile, Harley-Davidson stock turned positive in 4Q17 but continued to underperform the broader market for the fourth quarter in a row. It rose ~5.5% in 4Q17. In the previous two quarters, the company’s stock had fallen ~10.7% and 10.8%, respectively. Harley fell 12.8% in 2017. The company’s weakening profit margins and its management’s dismal 2017 outlook could be two key reasons why its stock remained weak in the year.

HOG’s 2017 performance was also worse than other auto companies’ performances. Last year, legacy auto companies (XLY) General Motors (GM), Ford Motor Company (F), and Honda Motor Company (HMC) rose 17.7%, 3.0%, and 16.8%, respectively.

On January 22, 2018, Harley-Davidson stock had risen 5.8% in 2018 so far. Investors’ optimism for its 2018 outlook could be one of the reasons for this recent gain.

In this series

In this series, we’ll find out what analysts’ estimates are for Harley-Davidson’s 4Q17 results. We’ll take a look at revenue and margin estimates for the company’s upcoming earnings reports. We’ll also cover its valuation multiples and key technical levels toward the end of the series.

Before we move on to Harley’s 4Q17 earnings estimates, let’s do a quick recap of the company’s most recent earnings results in the next article.


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