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Harley-Davidson Earnings Outlook: Decline Anticipated

Investors brace for Harley-Davidson's earnings report, with lower EPS and revenue expected. A potential stock price shift hinges on results exceeding or falling short of consensus estimates.

Date: 
AI Rating:   4

Analysis of Harley-Davidson's Earnings Prospects
Wall Street analysts anticipate a concerning decline in Harley-Davidson's (HOG) upcoming earnings report for Q1 2025, with predicted earnings of $0.90 per share, translating to a dramatic 47.7% year-over-year drop. Furthermore, revenues are projected to decrease by 24.3% to $1.12 billion. Such figures are significant indicators for professional investors, as they can directly influence market sentiment and stock price movement.

The lack of revision in the consensus EPS estimate over the last 30 days suggests analysts may have stabilized their outlook, yet it doesn't instill confidence about an earnings beat. The Earnings Whisper model indicates potential for a positive surprise due to an Earnings ESP of +20.82%, as the most accurate estimate is higher than the consensus. However, the Zacks Rank for Harley-Davidson is notably poor at #5, indicating a strong sell, thus dampening expectations of a significant positive earnings surprise.

Moreover, Harley-Davidson's recent earnings history is troubling; the company's last quarter showed a substantial loss, with a surprise miss of -36.76%. This trend understandably makes investors cautious, considering that despite previous earnings beats, the overall sentiment going into this report appears bleak.

Many investors will pay close attention to the upcoming earnings call, as management's commentary on business conditions could play a crucial role in shaping future expectations and stock price behavior. As seen with stocks in similar situations, a single earnings report could shift investor sentiment drastically, depending on whether results meet or miss consensus estimates.

Conclusion
In summary, the upcoming earnings release for Harley-Davidson represents a pivotal moment for investors. The potential for a significant drop in EPS and revenue is unfavorable for the stock, while the ambiguous Earnings ESP combined with poor Zacks Rank creates uncertainty around future performance.

Stocks:  HOG