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Auto Stocks' Q4 Earnings Slated on Feb 2: DLPH, ALV & More
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The auto sector saw a weak start to the Q4 earnings season, with Ford Motor Co. (F) reporting lower-than-expected earnings. The sector is not expected to see a strong earnings season this time around. As of Jan 30, nearly 10% of auto companies have reported results. These companies saw a 47.5% year-over-year decline in earnings and 5% fall in revenues, per our latest Earnings Outlook.
By the end of Q4, auto sector earnings are projected to decline 25.8%, while revenues are expected to inch up 0.2%. Meanwhile, total S&P 500 earnings and revenues are likely to increase 5.2% and 4% year over year, respectively.
Safety recalls and related costs have turned out to be a major issue for most automakers. The pressure to maintain attractive incentives and deals to boost volumes is also straining their margins and bottom line. Further, the impact of foreign currency translation remains a headwind for most of the companies.
Meanwhile, strong sales growth in the key markets of U.S., China and Europe has been the primary driving factor for the auto sector in Q4. Also, low fuel prices drove sales of higher margin vehicle segments, such as SUVs and light trucks.
With these factors in mind, let’s see what awaits these four auto stocks that are slated to release their fourth-quarter 2016 results on Feb 2.
The current numbers indicate that Delphi Automotive PLC is expected to come up with a positive earnings surprise as it carries a favorable Zacks Rank #3 (Hold) and an Earnings ESP of +1.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Autoliv, Inc. (ALV - Free Report) has an Earnings ESP of +1.09% because the Most Accurate estimate is pegged at $1.85 while the Zacks Consensus Estimate stands at $1.83. Autoliv carries a Zacks Rank #3 which coupled with a positive ESP makes us reasonably comfortable about an earnings beat. The company beat earnings in each of the trailing four quarters, thus delivering a positive average surprise of 10.15%.
Ferrari N.V. (RACE - Free Report) has an Earnings ESP of 0.00% because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 53 cents. This makes surprise prediction difficult even though the company carries a Zacks Rank #3. The company beat earnings in three of the trailing four quarters and missed in one, thus delivering a positive average surprise of 22.14% (read more: Ferrari: Can It Spring a Surprise in Q4 Earnings?).
Daimler AG has an Earnings ESP of 0.00% because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $2.15. This makes surprise prediction difficult even though the company carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered positive average earnings surprise of 52.20% over the trailing four quarters.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Auto Stocks' Q4 Earnings Slated on Feb 2: DLPH, ALV & More
The auto sector saw a weak start to the Q4 earnings season, with Ford Motor Co. (F) reporting lower-than-expected earnings. The sector is not expected to see a strong earnings season this time around. As of Jan 30, nearly 10% of auto companies have reported results. These companies saw a 47.5% year-over-year decline in earnings and 5% fall in revenues, per our latest Earnings Outlook.
By the end of Q4, auto sector earnings are projected to decline 25.8%, while revenues are expected to inch up 0.2%. Meanwhile, total S&P 500 earnings and revenues are likely to increase 5.2% and 4% year over year, respectively.
Safety recalls and related costs have turned out to be a major issue for most automakers. The pressure to maintain attractive incentives and deals to boost volumes is also straining their margins and bottom line. Further, the impact of foreign currency translation remains a headwind for most of the companies.
Meanwhile, strong sales growth in the key markets of U.S., China and Europe has been the primary driving factor for the auto sector in Q4. Also, low fuel prices drove sales of higher margin vehicle segments, such as SUVs and light trucks.
With these factors in mind, let’s see what awaits these four auto stocks that are slated to release their fourth-quarter 2016 results on Feb 2.
The current numbers indicate that Delphi Automotive PLC is expected to come up with a positive earnings surprise as it carries a favorable Zacks Rank #3 (Hold) and an Earnings ESP of +1.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company beat earnings in each of the trailing four quarters, thus delivering a positive average surprise of 2.79% over this period (read more: Delphi Automotive Earnings: A Beat in Store in Q4?).
Delphi Automotive PLC Price and EPS Surprise
Delphi Automotive PLC Price and EPS Surprise | Delphi Automotive PLC Quote
Autoliv, Inc. (ALV - Free Report) has an Earnings ESP of +1.09% because the Most Accurate estimate is pegged at $1.85 while the Zacks Consensus Estimate stands at $1.83. Autoliv carries a Zacks Rank #3 which coupled with a positive ESP makes us reasonably comfortable about an earnings beat. The company beat earnings in each of the trailing four quarters, thus delivering a positive average surprise of 10.15%.
Autoliv, Inc. Price and EPS Surprise
Autoliv, Inc. Price and EPS Surprise | Autoliv, Inc. Quote
Ferrari N.V. (RACE - Free Report) has an Earnings ESP of 0.00% because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 53 cents. This makes surprise prediction difficult even though the company carries a Zacks Rank #3. The company beat earnings in three of the trailing four quarters and missed in one, thus delivering a positive average surprise of 22.14% (read more: Ferrari: Can It Spring a Surprise in Q4 Earnings?).
Ferrari N.V. Price and EPS Surprise
Ferrari N.V. Price and EPS Surprise | Ferrari N.V. Quote
Daimler AG has an Earnings ESP of 0.00% because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $2.15. This makes surprise prediction difficult even though the company carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered positive average earnings surprise of 52.20% over the trailing four quarters.
Daimler AG Price and EPS Surprise
Daimler AG Price and EPS Surprise | Daimler AG Quote
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>