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Global automobile sector behemoths, General Motors (GM - Free Report) , Ford Motors (F - Free Report) , Honda Motor Corporation (HMC - Free Report) and Toyota Motors (TM - Free Report) released their quarterly earnings.
General Motors
Shares of General Motors Company were up 2.9% at market close on Oct 25, 2017, as it surpassed the Zacks Consensus Estimate on both earnings and revenue.
Earnings Discussion
General Motors reported non-GAAP earnings per share (EPS) of $1.32 for the third quarter of 2017, beating the Zacks Consensus Estimate of $1.07 but decreasing 2.3% year over year. Moreover, revenues of $33.623 billion beat the consensus mark of $31.597 billion. The company reported a 21.5% year-over-year decline in third-quarter 2017 revenues.
Revenue Performance
GM North America automotive revenues decreased to $24.819 billion from $31.085 billion in the year-ago quarter.
GM International Operations automotive revenues decreased to $3.007 billion from $3.376 billion in the year-ago quarter.
GM South America automotive revenues increased to $2.569 billion from $2.029 billion in the year-ago quarter.
Corporate automotive revenues increased to $80 million from $40 million in the year-ago quarter.
GM Financial Company revenues increased to $3.161 billion from $2.360 billion in the year-ago quarter.
Total unit sales decreased to 1.083 million units from 1.343 million in the year-ago quarter.
Ford
Shares of Ford Motors were up 1.9% at market close on Oct 26, 2017, as it surpassed the Zacks Consensus Estimate on both earnings and revenues.
Earnings Discussion
Ford reported non-GAAP earnings per share of $0.43, increasing 65.4% year over year. Also, it beat the Zacks Consensus Estimate of $0.33 for third-quarter 2017. Moreover, automotive revenues of $33.646 billion surpassed the consensus mark of $32.920 billion. The company reported a 0.94% increase in quarterly revenues year over year.
Revenue Performance
North America automotive revenues decreased to $20.9 billion from $21.8 billion in the year-ago quarter.
South America automotive revenues increased to $1.5 billion from $1.3 billion in the year-ago quarter.
Europe automotive revenues increased to $6.9 billion from $6.3 billion in the year-ago quarter.
Middle East & Africa automotive revenues decreased to $0.6 billion from $0.8 billion in the year-ago quarter.
Asia Pacific automotive revenues increased to $3.7 billion from $3.1 billion in the year-ago quarter.
Financial Services revenues increased to $2.8 billion from $2.6 billion in the year-ago quarter.
Honda Motor Corporation
Shares of Honda Motor were up 2.5% at market close on Nov 1, 2017, due to better-than-expected results. It beat the Zacks Consensus Estimate on both earnings and revenues.
Earnings Discussion
Honda reported non-GAAP earnings per share of $0.86, decreasing 11.3% year over year. Moreover, it beat the Zacks Consensus Estimate of $0.49 for the quarter. Consolidated sales revenues of $33.498 billion also beat the consensus mark of $31.432 billion. The company reported a 3.8% year-over-year increase in quarterly revenues.
Revenue Performance
Motorcycle Business revenues increased to $4.59 billion from $4.01 billion in the year-ago quarter.
Automobile Business revenues increased to $23.85 billion from $22.95 billion in the year-ago quarter.
Financial Service Business revenues increased to $4.82 billion from $4.34 billion in the year-ago quarter.
Power Product and Other Business revenues increased to $746.8 million from $673.5 million in the year-ago quarter.
Total Honda Group unit sales increased to 7.788 million units from 6.996 million units in the year-ago quarter.
Toyota Motor Corporation
Shares of Toyota Motor were up 1.45% at market close on Nov 7, 2017, due to better-than-expected results.
Earnings Discussion
Toyota reported earnings per share of $2.76, surpassing the Zacks Consensus Estimate of $2.62. Sales revenues of $64.407 billion also beat the consensus mark of $63.739 billion. The company reported a 1.7% year-over-year increase in quarterly revenues.
Revenue Performance
Automotive revenues decreased to $57.37 billion from $57.93 billion in the year-ago quarter.
Financial Service Business revenues increased to $4.44 billion from $4.23 billion in the year-ago quarter.
Other Business revenues increased to $3.88 billion from $2.78 billion in the year-ago quarter.
Total Toyota Group unit sales increased to 2.626 million units from 2.538 million units in the year-ago quarter.
In the current scenario, we believe it is prudent to discuss the following ETFs that have a relatively high exposure to the companies discussed.
First Trust NASDAQ Global Auto Index Fund (CARZ - Free Report)
This fund focuses on providing exposure to the global automotive sector. It has AUM of $20.8 million and charges a fee of 70 basis points a year. It has an allocation of 8.4% to Honda, 8.4% to General Motors, 8.1% to Toyota and 7.8% to Ford (as of Nov 14, 2017). The fund has returned 24.9% in a year and 19.6% year to date (as of Nov 15, 2017).
This fund focuses on providing exposure to the U.S. automotive sector. It has AUM of $38.4 million and charges a fee of 70 basis points a year. It has 5.5% allocation to General Motors and 5.1% to Ford (as of Sep 30, 2017). The fund has lost 1.7% year to date and 3.1% in a year (as of Nov 15, 2017).
BLDRS Asia 50 ADR Index Fund
This fund focuses on providing exposure to the Asian automotive sector. It has AUM of $23.6 million and charges a fee of 30 basis points a year. It has 10.2% allocation to Toyota and 3.5% to Honda (as of Nov 14, 2017). The fund has returned 22.9% year to date and 23.7% in the last one year (as of Nov 15, 2017).
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ETFs in Focus Post Auto Earnings
Global automobile sector behemoths, General Motors (GM - Free Report) , Ford Motors (F - Free Report) , Honda Motor Corporation (HMC - Free Report) and Toyota Motors (TM - Free Report) released their quarterly earnings.
General Motors
Shares of General Motors Company were up 2.9% at market close on Oct 25, 2017, as it surpassed the Zacks Consensus Estimate on both earnings and revenue.
Earnings Discussion
General Motors reported non-GAAP earnings per share (EPS) of $1.32 for the third quarter of 2017, beating the Zacks Consensus Estimate of $1.07 but decreasing 2.3% year over year. Moreover, revenues of $33.623 billion beat the consensus mark of $31.597 billion. The company reported a 21.5% year-over-year decline in third-quarter 2017 revenues.
Revenue Performance
GM North America automotive revenues decreased to $24.819 billion from $31.085 billion in the year-ago quarter.
GM International Operations automotive revenues decreased to $3.007 billion from $3.376 billion in the year-ago quarter.
GM South America automotive revenues increased to $2.569 billion from $2.029 billion in the year-ago quarter.
Corporate automotive revenues increased to $80 million from $40 million in the year-ago quarter.
GM Financial Company revenues increased to $3.161 billion from $2.360 billion in the year-ago quarter.
Total unit sales decreased to 1.083 million units from 1.343 million in the year-ago quarter.
Ford
Shares of Ford Motors were up 1.9% at market close on Oct 26, 2017, as it surpassed the Zacks Consensus Estimate on both earnings and revenues.
Earnings Discussion
Ford reported non-GAAP earnings per share of $0.43, increasing 65.4% year over year. Also, it beat the Zacks Consensus Estimate of $0.33 for third-quarter 2017. Moreover, automotive revenues of $33.646 billion surpassed the consensus mark of $32.920 billion. The company reported a 0.94% increase in quarterly revenues year over year.
Revenue Performance
North America automotive revenues decreased to $20.9 billion from $21.8 billion in the year-ago quarter.
South America automotive revenues increased to $1.5 billion from $1.3 billion in the year-ago quarter.
Europe automotive revenues increased to $6.9 billion from $6.3 billion in the year-ago quarter.
Middle East & Africa automotive revenues decreased to $0.6 billion from $0.8 billion in the year-ago quarter.
Asia Pacific automotive revenues increased to $3.7 billion from $3.1 billion in the year-ago quarter.
Financial Services revenues increased to $2.8 billion from $2.6 billion in the year-ago quarter.
Honda Motor Corporation
Shares of Honda Motor were up 2.5% at market close on Nov 1, 2017, due to better-than-expected results. It beat the Zacks Consensus Estimate on both earnings and revenues.
Earnings Discussion
Honda reported non-GAAP earnings per share of $0.86, decreasing 11.3% year over year. Moreover, it beat the Zacks Consensus Estimate of $0.49 for the quarter. Consolidated sales revenues of $33.498 billion also beat the consensus mark of $31.432 billion. The company reported a 3.8% year-over-year increase in quarterly revenues.
Revenue Performance
Motorcycle Business revenues increased to $4.59 billion from $4.01 billion in the year-ago quarter.
Automobile Business revenues increased to $23.85 billion from $22.95 billion in the year-ago quarter.
Financial Service Business revenues increased to $4.82 billion from $4.34 billion in the year-ago quarter.
Power Product and Other Business revenues increased to $746.8 million from $673.5 million in the year-ago quarter.
Total Honda Group unit sales increased to 7.788 million units from 6.996 million units in the year-ago quarter.
Toyota Motor Corporation
Shares of Toyota Motor were up 1.45% at market close on Nov 7, 2017, due to better-than-expected results.
Earnings Discussion
Toyota reported earnings per share of $2.76, surpassing the Zacks Consensus Estimate of $2.62. Sales revenues of $64.407 billion also beat the consensus mark of $63.739 billion. The company reported a 1.7% year-over-year increase in quarterly revenues.
Revenue Performance
Automotive revenues decreased to $57.37 billion from $57.93 billion in the year-ago quarter.
Financial Service Business revenues increased to $4.44 billion from $4.23 billion in the year-ago quarter.
Other Business revenues increased to $3.88 billion from $2.78 billion in the year-ago quarter.
Total Toyota Group unit sales increased to 2.626 million units from 2.538 million units in the year-ago quarter.
In the current scenario, we believe it is prudent to discuss the following ETFs that have a relatively high exposure to the companies discussed.
First Trust NASDAQ Global Auto Index Fund (CARZ - Free Report)
This fund focuses on providing exposure to the global automotive sector. It has AUM of $20.8 million and charges a fee of 70 basis points a year. It has an allocation of 8.4% to Honda, 8.4% to General Motors, 8.1% to Toyota and 7.8% to Ford (as of Nov 14, 2017). The fund has returned 24.9% in a year and 19.6% year to date (as of Nov 15, 2017).
WBI Power Factor High Dividend ETF (WBIY - Free Report)
This fund focuses on providing exposure to the U.S. automotive sector. It has AUM of $38.4 million and charges a fee of 70 basis points a year. It has 5.5% allocation to General Motors and 5.1% to Ford (as of Sep 30, 2017). The fund has lost 1.7% year to date and 3.1% in a year (as of Nov 15, 2017).
BLDRS Asia 50 ADR Index Fund
This fund focuses on providing exposure to the Asian automotive sector. It has AUM of $23.6 million and charges a fee of 30 basis points a year. It has 10.2% allocation to Toyota and 3.5% to Honda (as of Nov 14, 2017). The fund has returned 22.9% year to date and 23.7% in the last one year (as of Nov 15, 2017).
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>