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Bear of the Day: Harley-Davidson (HOG)
ZACKS· 2025-04-22 12:00
Company Overview - Harley-Davidson is facing significant challenges as the motorcycle industry experiences a demographic shift, with its core audience aging and younger consumers showing less interest in traditional motorcycles [2][3] - The company's LiveWire EV project has not generated sufficient interest or revenue to counterbalance the decline in traditional bike sales [3] Financial Performance - The latest earnings report indicated that Harley-Davidson's revenue missed expectations, with international sales particularly weak [3] - Analysts have revised earnings per share (EPS) estimates downward for both the current quarter and the full year, reflecting a bearish outlook [4] - Current year Zacks Consensus Estimates for EPS have decreased from $4.20 to $3.24, representing a contraction of 5.81%, alongside a sales contraction of 1.99% [4] Industry Context - The Automotive – Domestic industry, which includes Harley-Davidson, is ranked in the bottom 18% of the Zacks Industry Rank, indicating overall sector weakness [5] - Despite the challenges faced by Harley-Davidson, there are other companies within the industry, such as Xos and Zapp Electric Vehicles, that are performing better according to Zacks Rank [5]