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Auto Stocks Q2 Earnings Slated on Aug 4: CTB, MPG, SMP, SPXC
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The auto sector is worth checking out this earnings season as it has been the second-best performer in terms of earnings among the 16 Zacks sectors so far. As of Jul 29, nearly 81.8% of the sector’s companies had reported results. These companies recorded 18.8% year-over-year growth in earnings and 5.8% in revenues, per our Earnings Trends report. In comparison, the 317 S&P 500 companies that had reported through Jul 29 posted a 3.3% decline in earnings and a 0.9% fall in revenues.
By the end of Q2, auto sector earnings and revenue growth is projected to be around 15.5% and 2.1%, respectively. Meanwhile, total S&P 500 earnings and revenues are expected to decline 3.4% and 0.4% year over year, respectively.
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. Nonetheless, 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 hurdles. The negative impact of foreign currency translation also remains a headwind for the auto sector.
So, let’s see what awaits these four auto stocks that are slated to release their second-quarter 2016 results on Aug 4.
Cooper Tire & Rubber Co. carries a Zacks Rank #3 (Hold). Earnings ESP for the company is currently +7.48% as the Most Accurate estimate of $1.15 stands above the Zacks Consensus Estimate of $1.07. We note that the company delivered positive earnings surprises in each of the last four quarters, with an average positive surprise of 29.78% (read more: Cooper Tire Q2 Earnings May Beat: Stock to Gain?)
Metaldyne Performance Group Inc. has an Earnings ESP of +3.57% because the Most Accurate estimate is 58 cents, while the Zacks Consensus Estimate is pegged at 56 cents. The company, carrying a Zacks Rank #3, delivered a positive earnings surprise in three of the last four quarters. This resulted in a positive average surprise of 8.10%.
Standard Motor Products, Inc. (SMP - Free Report) carries a Zacks Rank #3. The Earnings ESP for the company is 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 74 cents. We note that the company delivered negative earnings surprises in three of the trailing four quarters, with an average negative surprise of 13.86%.
SPX Corporation (SPXC - Free Report) carries a Zacks Rank #3. The Earnings ESP for the company is currently pegged at 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 17 cents. We note that the company delivered a negative earnings surprise in three of the last four quarters. This resulted in a negative average surprise of 180.90%.
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Auto Stocks Q2 Earnings Slated on Aug 4: CTB, MPG, SMP, SPXC
The auto sector is worth checking out this earnings season as it has been the second-best performer in terms of earnings among the 16 Zacks sectors so far. As of Jul 29, nearly 81.8% of the sector’s companies had reported results. These companies recorded 18.8% year-over-year growth in earnings and 5.8% in revenues, per our Earnings Trends report. In comparison, the 317 S&P 500 companies that had reported through Jul 29 posted a 3.3% decline in earnings and a 0.9% fall in revenues.
By the end of Q2, auto sector earnings and revenue growth is projected to be around 15.5% and 2.1%, respectively. Meanwhile, total S&P 500 earnings and revenues are expected to decline 3.4% and 0.4% year over year, respectively.
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. Nonetheless, 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 hurdles. The negative impact of foreign currency translation also remains a headwind for the auto sector.
So, let’s see what awaits these four auto stocks that are slated to release their second-quarter 2016 results on Aug 4.
Cooper Tire & Rubber Co. carries a Zacks Rank #3 (Hold). Earnings ESP for the company is currently +7.48% as the Most Accurate estimate of $1.15 stands above the Zacks Consensus Estimate of $1.07. We note that the company delivered positive earnings surprises in each of the last four quarters, with an average positive surprise of 29.78% (read more: Cooper Tire Q2 Earnings May Beat: Stock to Gain?)
COOPER TIRE Price and EPS Surprise
COOPER TIRE Price and EPS Surprise | COOPER TIRE Quote
Metaldyne Performance Group Inc. has an Earnings ESP of +3.57% because the Most Accurate estimate is 58 cents, while the Zacks Consensus Estimate is pegged at 56 cents. The company, carrying a Zacks Rank #3, delivered a positive earnings surprise in three of the last four quarters. This resulted in a positive average surprise of 8.10%.
METALDYNE PERFM Price and EPS Surprise
METALDYNE PERFM Price and EPS Surprise | METALDYNE PERFM Quote
Standard Motor Products, Inc. (SMP - Free Report) carries a Zacks Rank #3. The Earnings ESP for the company is 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 74 cents. We note that the company delivered negative earnings surprises in three of the trailing four quarters, with an average negative surprise of 13.86%.
STANDARD MOTOR Price and EPS Surprise
STANDARD MOTOR Price and EPS Surprise | STANDARD MOTOR Quote
SPX Corporation (SPXC - Free Report) carries a Zacks Rank #3. The Earnings ESP for the company is currently pegged at 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 17 cents. We note that the company delivered a negative earnings surprise in three of the last four quarters. This resulted in a negative average surprise of 180.90%.
SPX CORP Price and EPS Surprise
SPX CORP Price and EPS Surprise | SPX CORP Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>