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Auto Q3 Earnings to Watch Early Next Week: CNHI, CTB, CPS
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The earnings at the auto sector have been mostly positive this week, despite projections of a decline. Nearly 40% of the sector’s companies had posted results as of Oct 26, 2016. These companies recorded a year-over-year improvement of 5.1% in earnings and 6.3% in revenues, per our Earnings Outlook report. In comparison, total S&P 500 companies that had reported till then posted a 3.2% increase in earnings and a 1.9% rise in revenues.
However, the overall projections for the auto sector’s Q3 earnings are still weak. By the end of the earnings season, auto sector earnings and revenues are expected to be down 12.4% and 4.7%, respectively. This will place it among the worst performers in the 16 Zacks sectors. In comparison, total S&P 500 earnings are projected to improve 1.4%, with revenues also rising 1.4% year over year.
The fall in U.S. auto sales over the last two months is expected to weigh on the results of many automakers. The pressure to maintain attractive incentives and deals may also strain their margins. Further, expenses related to safety recalls as well as the negative impact of foreign currency translation remain headwinds for the sector. However, there are a few positives as well. Strong sales growth in China and Europe is the primary driving factor for the auto sector in Q3. Moreover, low fuel prices are driving the sales of higher margin vehicle segments, such as SUVs and light trucks.
With all these factors in mind, let’s see what awaits these three auto stocks that are slated to release their third-quarter 2016 results early next week.
CNH Industrial N.V. (CNHI - Free Report) has an Earnings ESP of -40.00% as the Most Accurate estimate of 3 cents stands below the Zacks Consensus Estimate of 5 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
CNH surpassed earnings estimates in two of the trailing four quarters and missed in the other two. This resulted in an average negative surprise of 25.15% over this period. The company currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cooper Tire & Rubber Co. currently has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.01. The company sports a Zacks Rank #1. We note that Cooper Tire delivered positive earnings surprises in each of the trailing four quarters, with an average positive surprise of 22.13%. (Read more: Cooper Tire to Report Q3 Earnings: What to Expect?).
Cooper-Standard Holdings Inc. (CPS - Free Report) has an Earnings ESP of +7.30% as the Most Accurate estimate of $2.50 is above the Zacks Consensus Estimate of $2.33. The company posted positive earnings surprises in each of the trailing four quarters, with an average positive surprise of 51.17%. Cooper-Standard currently holds a Zacks Rank #4 (Sell).
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Auto Q3 Earnings to Watch Early Next Week: CNHI, CTB, CPS
The earnings at the auto sector have been mostly positive this week, despite projections of a decline. Nearly 40% of the sector’s companies had posted results as of Oct 26, 2016. These companies recorded a year-over-year improvement of 5.1% in earnings and 6.3% in revenues, per our Earnings Outlook report. In comparison, total S&P 500 companies that had reported till then posted a 3.2% increase in earnings and a 1.9% rise in revenues.
However, the overall projections for the auto sector’s Q3 earnings are still weak. By the end of the earnings season, auto sector earnings and revenues are expected to be down 12.4% and 4.7%, respectively. This will place it among the worst performers in the 16 Zacks sectors. In comparison, total S&P 500 earnings are projected to improve 1.4%, with revenues also rising 1.4% year over year.
The fall in U.S. auto sales over the last two months is expected to weigh on the results of many automakers. The pressure to maintain attractive incentives and deals may also strain their margins. Further, expenses related to safety recalls as well as the negative impact of foreign currency translation remain headwinds for the sector. However, there are a few positives as well. Strong sales growth in China and Europe is the primary driving factor for the auto sector in Q3. Moreover, low fuel prices are driving the sales of higher margin vehicle segments, such as SUVs and light trucks.
With all these factors in mind, let’s see what awaits these three auto stocks that are slated to release their third-quarter 2016 results early next week.
CNH Industrial N.V. (CNHI - Free Report) has an Earnings ESP of -40.00% as the Most Accurate estimate of 3 cents stands below the Zacks Consensus Estimate of 5 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
CNH surpassed earnings estimates in two of the trailing four quarters and missed in the other two. This resulted in an average negative surprise of 25.15% over this period. The company currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CNH INDUSTRIAL Price and EPS Surprise
CNH INDUSTRIAL Price and EPS Surprise | CNH INDUSTRIAL Quote
Cooper Tire & Rubber Co. currently has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.01. The company sports a Zacks Rank #1. We note that Cooper Tire delivered positive earnings surprises in each of the trailing four quarters, with an average positive surprise of 22.13%. (Read more: Cooper Tire to Report Q3 Earnings: What to Expect?).
COOPER TIRE Price and EPS Surprise
COOPER TIRE Price and EPS Surprise | COOPER TIRE Quote
Cooper-Standard Holdings Inc. (CPS - Free Report) has an Earnings ESP of +7.30% as the Most Accurate estimate of $2.50 is above the Zacks Consensus Estimate of $2.33. The company posted positive earnings surprises in each of the trailing four quarters, with an average positive surprise of 51.17%. Cooper-Standard currently holds a Zacks Rank #4 (Sell).
COOPER-STANDARD Price and EPS Surprise
COOPER-STANDARD Price and EPS Surprise | COOPER-STANDARD Quote
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