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Auto Stocks to Watch for Earnings on Jul 21: GM, JCI, DAN
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The Q2 earnings season is just getting started for the auto sector, although nearly 7.2% of the S&P 500 members had already reported results as of Jul 15. Last quarter, auto sector companies recorded impressive year-over-year earnings growth of 52.4% and revenue growth of 4.5%.
Q2 is expected to be weaker in comparison, with earnings and revenue growth projections of 8.3% and 1.8%, respectively, per our Earnings Preview report. However, considering that total S&P 500 earnings and revenues are expected to decline year over year, the auto sector seems to be better placed than others.
Revenues of auto companies are being driven by strong sales in major markets like the U.S., Europe and China in the first half of 2016. Meanwhile, the bottom line is benefiting from an increase in the sales of higher margin vehicle segments, such as SUVs and light trucks, due to low fuel prices. However, the pressure to maintain the attractive incentives and deals may strain the margins for automakers. Sluggishness in some markets and expenses related to safety recalls are other challenges.
Among the many stocks lined up to report this week, let’s see what awaits these three auto sector companies scheduled to release their results on Jul 21.
General Motors Company (GM - Free Report) carries a Zacks Rank #4 (Sell). Earnings ESP for the company is currently pegged at +4.08% as the Most Accurate estimate of $1.53 stands above the Zacks Consensus Estimate of $1.47. We note that the automaker delivered positive earnings surprises in each of the last four quarters. This resulted in an average beat of 21.13%. (Read more: General Motors Q2 Earnings May Beat: Stock to Gain?)
Johnson Controls Inc. (JCI - Free Report) has an Earnings ESP of +0.97% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is $1.03. Johnson Controls surpassed earnings estimates in three of the last four quarters, with a positive average surprise of 2.68%. (Read more: Johnson Controls Q3 Earnings May Beat: Stock to Gain?)
Dana Holding Corporation (DAN - Free Report) , a Zacks Rank #4 stock, has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter currently stands at 47 cents. The company has delivered a negative average surprise of 15.47% over the last four quarters.
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Auto Stocks to Watch for Earnings on Jul 21: GM, JCI, DAN
The Q2 earnings season is just getting started for the auto sector, although nearly 7.2% of the S&P 500 members had already reported results as of Jul 15. Last quarter, auto sector companies recorded impressive year-over-year earnings growth of 52.4% and revenue growth of 4.5%.
Q2 is expected to be weaker in comparison, with earnings and revenue growth projections of 8.3% and 1.8%, respectively, per our Earnings Preview report. However, considering that total S&P 500 earnings and revenues are expected to decline year over year, the auto sector seems to be better placed than others.
Revenues of auto companies are being driven by strong sales in major markets like the U.S., Europe and China in the first half of 2016. Meanwhile, the bottom line is benefiting from an increase in the sales of higher margin vehicle segments, such as SUVs and light trucks, due to low fuel prices. However, the pressure to maintain the attractive incentives and deals may strain the margins for automakers. Sluggishness in some markets and expenses related to safety recalls are other challenges.
Among the many stocks lined up to report this week, let’s see what awaits these three auto sector companies scheduled to release their results on Jul 21.
General Motors Company (GM - Free Report) carries a Zacks Rank #4 (Sell). Earnings ESP for the company is currently pegged at +4.08% as the Most Accurate estimate of $1.53 stands above the Zacks Consensus Estimate of $1.47. We note that the automaker delivered positive earnings surprises in each of the last four quarters. This resulted in an average beat of 21.13%. (Read more: General Motors Q2 Earnings May Beat: Stock to Gain?)
GENERAL MOTORS Price and EPS Surprise
GENERAL MOTORS Price and EPS Surprise | GENERAL MOTORS Quote
Johnson Controls Inc. (JCI - Free Report) has an Earnings ESP of +0.97% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is $1.03. Johnson Controls surpassed earnings estimates in three of the last four quarters, with a positive average surprise of 2.68%. (Read more: Johnson Controls Q3 Earnings May Beat: Stock to Gain?)
JOHNSON CONTROL Price and EPS Surprise
JOHNSON CONTROL Price and EPS Surprise | JOHNSON CONTROL Quote
Dana Holding Corporation (DAN - Free Report) , a Zacks Rank #4 stock, has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter currently stands at 47 cents. The company has delivered a negative average surprise of 15.47% over the last four quarters.
DANA HOLDING CP Price and EPS Surprise
DANA HOLDING CP Price and EPS Surprise | DANA HOLDING CP Quote
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