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The Zacks Analyst Blog Highlights: NIO, Ford, BorgWarner, Winnebago Industries and Toyota Motor
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For Immediate Release
Chicago, IL – March 31, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NIO Limited (NIO - Free Report) , Ford Motor Company (F - Free Report) , BorgWarner Inc. (BWA - Free Report) , Winnebago Industries, Inc. (WGO - Free Report) and Toyota Motor Corporation (TM - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Auto Stock Roundup: EU, EVs and More
Last week, the European Automobile Manufacturers Association released data for commercial vehicle registrations made in February 2021. Apart from buses and coaches, registrations of all other vehicle segments recorded year-over-year growth. New registrations edged up1.2% year over year to 156,444 units.
Most of the European Union (EU) markets saw double-digit declines. Registrations in major markets like Spain, Germany and France declined 17.7%, 2.3%, and 5%, respectively. Italy, however, saw year-over-year growth of 11% in commercial vehicle registrations for February.
Meanwhile, global chip crunch is wreaking havoc on the auto industry and showing no signs of abatement anytime soon. Fire breakout at a Renesas Electronics chip plant has only exacerbated the chip famine. Being one of the largest chipmakers for the auto industry, Renesas believes that the mishap would have a massive impact on chip supplies as operations at the affected plant are expected to remain shuttered for at least a month.
Most of the automakers are trying to assess the fallout from this recent speed bump. It should be noted that the auto industry is estimated to lose $61 billion of 2021 sales due to chip shortages.
Amid the global chip crisis, NIO temporarily shuttered operations in the JAC-NIO manufacturing plant in Hefei for five days beginning Mar 29. The shortage of semiconductor supply has also taken a hit on the company's production for first-quarter 2021. NIO—which currently carries a Zacks Rank #3 (Hold)— now anticipates to deliver 19,500 cars in the March-end quarter versus the prior guidance of 20,000-20,500 units. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Last Week's Top Stories
Ford announced that it will build the new 2.5-litre Duratec hybrid engine at the Valencia Engine Plant in Spain in late 2022. The automaker further noted plans of investing additional 5.2 million euros in the plant in order to enhance battery pack assembly capacity. Investment of 5.2 million is in addition to the initial investment of the 24 million euros announced in January 2020.
Meanwhile, the U.S. auto giant also introduced FORDLiive — a new connected uptime system that is set to enhance productivity of the company's commercial vehicles via maximization of uptime. It is the first step in its long-term pursuit of achieving 100% operating uptime.
BorgWarner unveiled the Project CHARGING FORWARD at its Investor Day yesterday, per which the company plans to boost electric vehicles' (EVs) revenues to around 45% of total revenues by 2030 from the current level of less than 3%.
The CHARGING FORWARD plan represents an acceleration of the company's electrification strategy. It encompasses facilitating its transition to electric light vehicles in a profitable manner and expansion in the electric commercial vehicles market, as well as streamlining BorgWarner's combustion portfolio via disposal of businesses having revenues in the range of $3-$4 billion.
Winnebago Industriesreported second-quarter fiscal 2021 (ended Feb 27, 2021) adjusted earnings per share of $2.12, surpassing the Zacks Consensus Estimate of $1.39 and increasing from the year-ago level of 67 cents. This recreational vehicle maker reported revenues of $840 million for the quarter under review, outpacing the Zacks Consensus Estimate of $804 million.
Moreover, the top line improved 34% year over year. Winnebago had cash and cash equivalents of $333 million as of Feb 27, 2021, up from $292.6 million on Aug 29, 2020. Long-term debt (excluding current maturities) totaled $520.3 million, slightly up from the $512.6 million recorded on Aug 29, 2020.
Toyota Motor entered into a partnership with Isuzu Motors Ltd. and Hino Motors Ltd. in commercial vehicles aimed at addressing transport difficulties and achieving carbon neutrality. Per the terms of the deal, Toyota will acquire 39 million shares of truckmaker Isuzu's common stock worth 42.8 billion yen.
The three Japan-based companies are jointly setting up a new entity called Commercial Japan Partnership Technologies Corporation in Tokyo to promote their partnership, and plan for technology and services. Capitalized at 10 million yen, the new company will commence operations from Apr 1, 2021, and be 80% owned by Toyota, and 10% each by Isuzu and Hino.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: NIO, Ford, BorgWarner, Winnebago Industries and Toyota Motor
For Immediate Release
Chicago, IL – March 31, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NIO Limited (NIO - Free Report) , Ford Motor Company (F - Free Report) , BorgWarner Inc. (BWA - Free Report) , Winnebago Industries, Inc. (WGO - Free Report) and Toyota Motor Corporation (TM - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Auto Stock Roundup: EU, EVs and More
Last week, the European Automobile Manufacturers Association released data for commercial vehicle registrations made in February 2021. Apart from buses and coaches, registrations of all other vehicle segments recorded year-over-year growth. New registrations edged up1.2% year over year to 156,444 units.
Most of the European Union (EU) markets saw double-digit declines. Registrations in major markets like Spain, Germany and France declined 17.7%, 2.3%, and 5%, respectively. Italy, however, saw year-over-year growth of 11% in commercial vehicle registrations for February.
Meanwhile, global chip crunch is wreaking havoc on the auto industry and showing no signs of abatement anytime soon. Fire breakout at a Renesas Electronics chip plant has only exacerbated the chip famine. Being one of the largest chipmakers for the auto industry, Renesas believes that the mishap would have a massive impact on chip supplies as operations at the affected plant are expected to remain shuttered for at least a month.
Most of the automakers are trying to assess the fallout from this recent speed bump. It should be noted that the auto industry is estimated to lose $61 billion of 2021 sales due to chip shortages.
Amid the global chip crisis, NIO temporarily shuttered operations in the JAC-NIO manufacturing plant in Hefei for five days beginning Mar 29. The shortage of semiconductor supply has also taken a hit on the company's production for first-quarter 2021. NIO—which currently carries a Zacks Rank #3 (Hold)— now anticipates to deliver 19,500 cars in the March-end quarter versus the prior guidance of 20,000-20,500 units. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Last Week's Top Stories
Ford announced that it will build the new 2.5-litre Duratec hybrid engine at the Valencia Engine Plant in Spain in late 2022. The automaker further noted plans of investing additional 5.2 million euros in the plant in order to enhance battery pack assembly capacity. Investment of 5.2 million is in addition to the initial investment of the 24 million euros announced in January 2020.
Meanwhile, the U.S. auto giant also introduced FORDLiive — a new connected uptime system that is set to enhance productivity of the company's commercial vehicles via maximization of uptime. It is the first step in its long-term pursuit of achieving 100% operating uptime.
BorgWarner unveiled the Project CHARGING FORWARD at its Investor Day yesterday, per which the company plans to boost electric vehicles' (EVs) revenues to around 45% of total revenues by 2030 from the current level of less than 3%.
The CHARGING FORWARD plan represents an acceleration of the company's electrification strategy. It encompasses facilitating its transition to electric light vehicles in a profitable manner and expansion in the electric commercial vehicles market, as well as streamlining BorgWarner's combustion portfolio via disposal of businesses having revenues in the range of $3-$4 billion.
Winnebago Industries reported second-quarter fiscal 2021 (ended Feb 27, 2021) adjusted earnings per share of $2.12, surpassing the Zacks Consensus Estimate of $1.39 and increasing from the year-ago level of 67 cents. This recreational vehicle maker reported revenues of $840 million for the quarter under review, outpacing the Zacks Consensus Estimate of $804 million.
Moreover, the top line improved 34% year over year. Winnebago had cash and cash equivalents of $333 million as of Feb 27, 2021, up from $292.6 million on Aug 29, 2020. Long-term debt (excluding current maturities) totaled $520.3 million, slightly up from the $512.6 million recorded on Aug 29, 2020.
Toyota Motor entered into a partnership with Isuzu Motors Ltd. and Hino Motors Ltd. in commercial vehicles aimed at addressing transport difficulties and achieving carbon neutrality. Per the terms of the deal, Toyota will acquire 39 million shares of truckmaker Isuzu's common stock worth 42.8 billion yen.
The three Japan-based companies are jointly setting up a new entity called Commercial Japan Partnership Technologies Corporation in Tokyo to promote their partnership, and plan for technology and services. Capitalized at 10 million yen, the new company will commence operations from Apr 1, 2021, and be 80% owned by Toyota, and 10% each by Isuzu and Hino.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.