We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Auto Stocks to Watch for Earnings on Nov 1: BAMXF, CMI, OSK
Read MoreHide Full Article
Following a positive streak at the beginning of Q3, earnings at the auto sector nosedived at the end of last week. Nearly 80% of the sector’s companies had posted results as of Oct 28, 2016. These companies recorded a year-over-year decline of 9.4% in earnings and 1.2% in revenues, per our Earnings Preview report. In comparison, total S&P 500 companies that had reported till then posted a 2.2% increase in earnings and a 1.3% rise in revenues.
The overall projections for the auto sector’s Q3 earnings remain weak. By the end of the earnings season, auto sector earnings and revenues are expected to be down 8.8% 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 2.0%, with revenues also rising 1.4% year over year.
The fall in U.S. auto sales over the last two months is affecting 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 adverse 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 results on Nov 1.
Bayerische Motoren Werke Aktiengesellschaft (BAMXF - Free Report) has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $2.68. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Cummins Inc. (CMI - Free Report) currently has an Earnings ESP of -1.04% because the Most Accurate estimate stands at $1.91, while the Zacks Consensus Estimate is pegged at $1.93. The company has a Zacks Rank #3 (Hold). We note that Cummins delivered positive earnings surprises in two of the trailing four quarters and negative surprises in the other two. This resulted in an average negative surprise of 0.38%. (Read more: Cummins Q3 Earnings: Is a Disappointment in Store?).
Oshkosh Corporation (OSK - Free Report) has an Earnings ESP of +1.19% as the Most Accurate estimate of 85 cents is above the Zacks Consensus Estimate of 84 cents. The company posted positive earnings surprises in three of the trailing four quarters, with an average positive surprise of 2.29%. Oshkosh currently holds a Zacks Rank #4 (Sell).
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Auto Stocks to Watch for Earnings on Nov 1: BAMXF, CMI, OSK
Following a positive streak at the beginning of Q3, earnings at the auto sector nosedived at the end of last week. Nearly 80% of the sector’s companies had posted results as of Oct 28, 2016. These companies recorded a year-over-year decline of 9.4% in earnings and 1.2% in revenues, per our Earnings Preview report. In comparison, total S&P 500 companies that had reported till then posted a 2.2% increase in earnings and a 1.3% rise in revenues.
The overall projections for the auto sector’s Q3 earnings remain weak. By the end of the earnings season, auto sector earnings and revenues are expected to be down 8.8% 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 2.0%, with revenues also rising 1.4% year over year.
The fall in U.S. auto sales over the last two months is affecting 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 adverse 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 results on Nov 1.
Bayerische Motoren Werke Aktiengesellschaft (BAMXF - Free Report) has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $2.68. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BMW AG Price
BMW AG Price | BMW AG Quote
Cummins Inc. (CMI - Free Report) currently has an Earnings ESP of -1.04% because the Most Accurate estimate stands at $1.91, while the Zacks Consensus Estimate is pegged at $1.93. The company has a Zacks Rank #3 (Hold). We note that Cummins delivered positive earnings surprises in two of the trailing four quarters and negative surprises in the other two. This resulted in an average negative surprise of 0.38%. (Read more: Cummins Q3 Earnings: Is a Disappointment in Store?).
CUMMINS INC Price and EPS Surprise
CUMMINS INC Price and EPS Surprise | CUMMINS INC Quote
Oshkosh Corporation (OSK - Free Report) has an Earnings ESP of +1.19% as the Most Accurate estimate of 85 cents is above the Zacks Consensus Estimate of 84 cents. The company posted positive earnings surprises in three of the trailing four quarters, with an average positive surprise of 2.29%. Oshkosh currently holds a Zacks Rank #4 (Sell).
OSHKOSH CORP Price and EPS Surprise
OSHKOSH CORP Price and EPS Surprise | OSHKOSH CORP Quote
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>