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The Zacks Analyst Blog Highlights: Ford Motor, General Motors, Toyota Motor, Honda Motor and Tesla
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For Immediate Release
Chicago, IL – May 4, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Ford Motor Company (F - Free Report) , General Motors Company (GM - Free Report) , Toyota Motor Corporation (TM - Free Report) , Honda Motor Co., Ltd. (HMC - Free Report) and Tesla, Inc. (TSLA - Free Report) .
Auto Stock Roundup: Earnings from GM, HMC, TSLA & More
Past week saw automakers release their new-vehicle sales figures for April. Some important automakers reported lower new-vehicle sales in the United States in April. For some automakers, sales decline followed a poor performance in February and a jump in sales for March. In fact, waning consumer demand and intensified competition can be attributed to this decline.
Ford Motor Company posted a 4.7% decline in sales, with 2.6% decrease in retail sales to consumers. General Motors Company is no longer reporting monthly sales and planned to report the figures on a quarterly basis instead. Toyota Motor Corporation posted a 4.7% decline in sales for April while Fiat Chrysler Automobiles NV posted an overall sales increase of 5%.
In 2017, auto sales declined 2% after setting a sales record of 7.55 million units in 2016. Moreover, sales are likely to decline further in 2018 due to an increase in monthly repayment amount as the interest rate goes up and the return of a large number of nearly-new vehicles after the expiration of the lease.
1. General Motors reported first-quarter 2018 adjusted earnings per share of $1.43, down 18.3% from the prior-year quarter. However, the bottom line comfortably beat the Zacks Consensus Estimate of $1.22. General Motors’ crossover sales in first-quarter 2018 rose 23% on a year-over-year basis.
General Motors reported revenues of $36.1 billion, reflecting a decline of 3.1% from the year-ago quarter. However, revenues surpassed the Zacks Consensus Estimate of $34.1 billion.
During the reported quarter, total sales for the wholesale unit declined to 1.16 million from 1.24 million in the first quarter of 2017. Worldwide retail-unit sales decreased to 2.10 million from 2.34 million in the year-ago quarter. The automaker’s global market share was 11.4% during the reported quarter, reflecting a decline from 11.6% in the year-ago quarter. (Read more: General Motors Q1 Earnings & Revenues Beat Estimates)
General Motors currently carries a Zacks Rank #3 (Hold).
2. Honda Motor Co., Ltd. reported consolidated income of ¥107.7 billion or ¥60.59 per share (56 cents per ADR) in the fourth quarter of fiscal 2018 (ended Mar 31, 2018), up 12.3% from the year-ago period. The Zacks Consensus Estimate for earnings per share during the reported quarter was 46 cents.
Consolidated sales revenues increased 4% year over year to ¥3.91 trillion ($36.1 billion). The figure surpassed the Zacks Consensus Estimate of $34.7 billion. The year-over-year increase can be attributed to higher revenues in all business operations despite unfavorable foreign currency translations.
Consolidated operating profit was ¥126.8 billion, reflecting a decrease of 8.2% from the prior-year quarter, attributable to an increase in selling, general and administrative (SG&A) expenses and unfavorable currency effects despite continuous efforts to cut costs. (Read more: Honda's Q4 Earnings & Revenues Beat Estimates, Up Y/Y)
Honda currently carries a Zacks Rank #4 (Sell).
3. Johnson Controls International plc reported adjusted earnings of 53 cents per share in second-quarter fiscal 2018, beating the Zacks Consensus Estimate of 52 cents. Moreover, earnings increased 6% from 50 cents per share registered in second-quarter fiscal 2017.
Johnson Controls reported revenues of $7.48 billion, surpassing the Zacks Consensus Estimate of $7.45 billion. Revenues increased 3% year over year.
Cost of sales increased to $5.26 billion from $4.99 billion in the year-ago quarter. Gross profit decreased to $2.22 billion from $2.28 billion in the year-ago quarter.
Selling, general and administrative expenses in the fiscal second quarter totaled $1.59 billion, decreasing from the prior-year quarter figure of $1.73 billion. (Read more: Johnson Controls Q2 Earnings & Revenues Beat Estimates)
Johnson Controls currently carries a Zacks Rank #4.
4. Tesla, Inc. incurred an adjusted loss of $3.35 per share in first-quarter 2018, narrower than the Zacks Consensus Estimate of the loss of $3.37. The company reported loss of $1.33 per share in the prior-year quarter.
The reported net loss in the quarter under review was $784.6 million compared with the year-ago net loss of $397.2 million.
Revenues increased to $3.41 billion from $2.70 billion registered in first-quarter 2017. The figure surpassed the Zacks Consensus Estimate of $3.17 billion.
Tesla produced 34,494 vehicles in first-quarter 2018, up 40% sequentially. This happens to be the most productive quarter in the history of Tesla. Out of total vehicles produced, 24,728 were Model S and Model X while 9,766 were Model 3. Also, during the reported quarter, the company delivered 29,997 vehicles, including 21,815 Model S and Model X vehicles along with 8,182 Model 3 vehicles.
Total automotive revenues, including revenues from automotive sales and leasing, increased 19% year over year to $2.74 billion in the reported quarter. The rise was due to Model 3 deliveries and the adoption of new accounting standards.
Energy generation and storage revenues soared from $213.9 million in first-quarter 2017 to $410 million in the reported quarter. The rise was mainly due to considerable growth of energy-storage deployments.
Services and other revenues increased 37% year over year, primarily due to higher used-car sales.
Tesla’s first-quarter 2018 automotive gross margin was 18.8%, declining 904 basis points (bps) from first-quarter 2017.
Energy generation and storage gross margin declined 2,061 bps on a year-over-year basis to 8.5%.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Ford Motor, General Motors, Toyota Motor, Honda Motor and Tesla
For Immediate Release
Chicago, IL – May 4, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Ford Motor Company (F - Free Report) , General Motors Company (GM - Free Report) , Toyota Motor Corporation (TM - Free Report) , Honda Motor Co., Ltd. (HMC - Free Report) and Tesla, Inc. (TSLA - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
Auto Stock Roundup: Earnings from GM, HMC, TSLA & More
Past week saw automakers release their new-vehicle sales figures for April. Some important automakers reported lower new-vehicle sales in the United States in April. For some automakers, sales decline followed a poor performance in February and a jump in sales for March. In fact, waning consumer demand and intensified competition can be attributed to this decline.
Ford Motor Company posted a 4.7% decline in sales, with 2.6% decrease in retail sales to consumers. General Motors Company is no longer reporting monthly sales and planned to report the figures on a quarterly basis instead. Toyota Motor Corporation posted a 4.7% decline in sales for April while Fiat Chrysler Automobiles NV posted an overall sales increase of 5%.
In 2017, auto sales declined 2% after setting a sales record of 7.55 million units in 2016. Moreover, sales are likely to decline further in 2018 due to an increase in monthly repayment amount as the interest rate goes up and the return of a large number of nearly-new vehicles after the expiration of the lease.
(Read the previous roundup here: Auto Stock Roundup for Apr 26, 2018)
Recap of the Week’s Most Important Stories
1. General Motors reported first-quarter 2018 adjusted earnings per share of $1.43, down 18.3% from the prior-year quarter. However, the bottom line comfortably beat the Zacks Consensus Estimate of $1.22. General Motors’ crossover sales in first-quarter 2018 rose 23% on a year-over-year basis.
General Motors reported revenues of $36.1 billion, reflecting a decline of 3.1% from the year-ago quarter. However, revenues surpassed the Zacks Consensus Estimate of $34.1 billion.
During the reported quarter, total sales for the wholesale unit declined to 1.16 million from 1.24 million in the first quarter of 2017. Worldwide retail-unit sales decreased to 2.10 million from 2.34 million in the year-ago quarter. The automaker’s global market share was 11.4% during the reported quarter, reflecting a decline from 11.6% in the year-ago quarter. (Read more: General Motors Q1 Earnings & Revenues Beat Estimates)
General Motors currently carries a Zacks Rank #3 (Hold).
2. Honda Motor Co., Ltd. reported consolidated income of ¥107.7 billion or ¥60.59 per share (56 cents per ADR) in the fourth quarter of fiscal 2018 (ended Mar 31, 2018), up 12.3% from the year-ago period. The Zacks Consensus Estimate for earnings per share during the reported quarter was 46 cents.
Consolidated sales revenues increased 4% year over year to ¥3.91 trillion ($36.1 billion). The figure surpassed the Zacks Consensus Estimate of $34.7 billion. The year-over-year increase can be attributed to higher revenues in all business operations despite unfavorable foreign currency translations.
Consolidated operating profit was ¥126.8 billion, reflecting a decrease of 8.2% from the prior-year quarter, attributable to an increase in selling, general and administrative (SG&A) expenses and unfavorable currency effects despite continuous efforts to cut costs. (Read more: Honda's Q4 Earnings & Revenues Beat Estimates, Up Y/Y)
Honda currently carries a Zacks Rank #4 (Sell).
3. Johnson Controls International plc reported adjusted earnings of 53 cents per share in second-quarter fiscal 2018, beating the Zacks Consensus Estimate of 52 cents. Moreover, earnings increased 6% from 50 cents per share registered in second-quarter fiscal 2017.
Johnson Controls reported revenues of $7.48 billion, surpassing the Zacks Consensus Estimate of $7.45 billion. Revenues increased 3% year over year.
Cost of sales increased to $5.26 billion from $4.99 billion in the year-ago quarter. Gross profit decreased to $2.22 billion from $2.28 billion in the year-ago quarter.
Selling, general and administrative expenses in the fiscal second quarter totaled $1.59 billion, decreasing from the prior-year quarter figure of $1.73 billion. (Read more: Johnson Controls Q2 Earnings & Revenues Beat Estimates)
Johnson Controls currently carries a Zacks Rank #4.
4. Tesla, Inc. incurred an adjusted loss of $3.35 per share in first-quarter 2018, narrower than the Zacks Consensus Estimate of the loss of $3.37. The company reported loss of $1.33 per share in the prior-year quarter.
The reported net loss in the quarter under review was $784.6 million compared with the year-ago net loss of $397.2 million.
Revenues increased to $3.41 billion from $2.70 billion registered in first-quarter 2017. The figure surpassed the Zacks Consensus Estimate of $3.17 billion.
Tesla produced 34,494 vehicles in first-quarter 2018, up 40% sequentially. This happens to be the most productive quarter in the history of Tesla. Out of total vehicles produced, 24,728 were Model S and Model X while 9,766 were Model 3. Also, during the reported quarter, the company delivered 29,997 vehicles, including 21,815 Model S and Model X vehicles along with 8,182 Model 3 vehicles.
Total automotive revenues, including revenues from automotive sales and leasing, increased 19% year over year to $2.74 billion in the reported quarter. The rise was due to Model 3 deliveries and the adoption of new accounting standards.
Energy generation and storage revenues soared from $213.9 million in first-quarter 2017 to $410 million in the reported quarter. The rise was mainly due to considerable growth of energy-storage deployments.
Services and other revenues increased 37% year over year, primarily due to higher used-car sales.
Tesla’s first-quarter 2018 automotive gross margin was 18.8%, declining 904 basis points (bps) from first-quarter 2017.
Energy generation and storage gross margin declined 2,061 bps on a year-over-year basis to 8.5%.
Tesla currently carries a Zacks Rank #3.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.