Harley-Davidson, Inc. (HOG) is gearing up to unveil its third-quarter earnings report on Thursday, October 24th, before the opening bell. While the iconic motorcycle manufacturer is expected to report a decline in both earnings and revenue compared to the same period last year, investors are keen to gauge the company’s performance and outlook for the future.
Analysts anticipate that Harley-Davidson will report earnings of 79 cents per share for the third quarter, a significant drop from the $1.38 per share recorded in the year-ago period. Revenue projections for the quarter stand at $965.78 million, down from $1.3 billion in the previous year. These estimates are based on data compiled by Benzinga Pro.
The company’s board of directors recently approved a cash dividend of 17.25 cents per share for the third quarter, a signal of its commitment to shareholder value despite challenging market conditions. Harley-Davidson’s share price closed at $34.13 on Wednesday, down 1.2%.
Analyst Sentiment: A Mixed Bag
To shed light on the current market sentiment surrounding HOG, let’s examine the recent ratings and price targets from prominent Wall Street analysts:
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B of A Securities:
Analyst Robert Ohmes maintained a Buy rating for HOG but lowered the price target from $50 to $45 on October 15th. This analyst boasts an accuracy rate of 77%.*
Baird:
Craig Kennison downgraded the stock from Outperform to Neutral and slashed the price target from $44 to $40 on October 2nd. This analyst has an accuracy rate of 66%.*
Citigroup:
James Hardiman maintained a Neutral rating but raised the price target from $37 to $39 on September 19th. This analyst has an accuracy rate of 68%.*
UBS:
Robin Farley held steady with a Neutral rating and increased the price target from $39 to $40 on August 23rd. This analyst has an accuracy rate of 82%.*
Morgan Stanley:
Adam Jonas maintained an Overweight rating and raised the price target from $50 to $51 on April 26th. This analyst has an accuracy rate of 60%.While analyst opinions vary, it’s evident that the market sentiment surrounding Harley-Davidson remains mixed. The company’s earnings report is expected to provide valuable insights into the direction of the motorcycle industry and its ability to navigate the current economic environment.
As investors await the upcoming earnings release, the company’s commitment to dividend payouts and its efforts to expand into new markets will be key factors influencing its future performance. The upcoming earnings call will be a crucial opportunity for Harley-Davidson to outline its strategic priorities and address concerns about its growth trajectory.