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Automakers Feel Tariff Headwinds, Boeing Down Post-Beat
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Wednesday, July 25, 2018
Ahead of the opening bell today, we see an almost overwhelming slew of new Q2 earnings reports. Certainly there are more than we have time to delve into completely here at Ahead of Wall Street, but we can at least touch upon those expected to have a major impact on regular trading today.
A good example of this would be how aircraft giant Boeing’s (BA - Free Report) Q2 results are currently pulling down the Dow 30 index (looking to open down triple-digits) this morning. Although the Chicago, IL-based Zacks Rank #3 (Hold)-rated company beat estimates on both its top and bottom lines — $3.33 per share on $24.3 billion in revenues, compared to $3.24 per share and $24.0 billion expected, respectively — lowered full-year earnings guidance has sent Boeing shares down roughly 3% at this hour. For more on BA’s earnings, click here.
Also, two of (what was once known as) the Big Three automakers reported earnings results prior to today’s market open. General Motors (GM - Free Report) posted an earnings miss for the first time in at least the past 5 quarters, posting earnings of $1.81 per share, a 5-cent miss, and sales of $36.8 billion, beneath the Zacks consensus $37.1 billion.
The automaking giant also lowered full-year guidance on expectations of commodity costs — mostly steel and aluminum, which have now felt the impact of the beginnings of a current “trade war” — rising $1 billion this year. Though vehicle deliveries doubled year over year, costs are hitting the company hard. Shares are down 5% in the pre-market. For more on GM’s earnings, click here.
Fiat Chrysler shares have also tumbled in today’s pre-market following its disappointing Q2 results, down 8% upon the initial release. As the conference call continues at this hour, we continue to parse through foreign exchange translations.
Tariffs in China have also caused Fiat Chrysler to lower full-year guidance. Related to the company, former company CEO Sergio Marchionne has reportedly died this morning after a battle with ill health. The former Ferrari Chairman and automaking giant was 66.
After the bell, we look for Q2 earnings results from Ford Motor Company (F - Free Report) , the third of the “Big 3.” Expectations are for the company to post 34 cents per share (down nearly 40% year over year) on $35.53 billion in sales (-4.26% from the year-ago quarter). Current fiscal year estimates are for $1.52 per share and $147.05 billion in revenues. Should Ford disappoint as GM and Fiat Chrysler have this morning — and some analyst expect Tesla (TSLA - Free Report) will next week — it will be the second earnings miss in the past three quarters.
We also look toward Facebook earnings results once the market closes this afternoon, with the Zacks Rank #2 (Buy)-rated company expected to fetch $1.75 per share (up more than 32% year over year) on $13.43 billion (+44% from Q2 2017). Facebook has beaten in each of the trailing 4 quarters by an average of 19%. Current full-year estimates are for $7.72 per share on $57.2 billion in sales.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Automakers Feel Tariff Headwinds, Boeing Down Post-Beat
Wednesday, July 25, 2018
Ahead of the opening bell today, we see an almost overwhelming slew of new Q2 earnings reports. Certainly there are more than we have time to delve into completely here at Ahead of Wall Street, but we can at least touch upon those expected to have a major impact on regular trading today.
A good example of this would be how aircraft giant Boeing’s (BA - Free Report) Q2 results are currently pulling down the Dow 30 index (looking to open down triple-digits) this morning. Although the Chicago, IL-based Zacks Rank #3 (Hold)-rated company beat estimates on both its top and bottom lines — $3.33 per share on $24.3 billion in revenues, compared to $3.24 per share and $24.0 billion expected, respectively — lowered full-year earnings guidance has sent Boeing shares down roughly 3% at this hour. For more on BA’s earnings, click here.
Also, two of (what was once known as) the Big Three automakers reported earnings results prior to today’s market open. General Motors (GM - Free Report) posted an earnings miss for the first time in at least the past 5 quarters, posting earnings of $1.81 per share, a 5-cent miss, and sales of $36.8 billion, beneath the Zacks consensus $37.1 billion.
The automaking giant also lowered full-year guidance on expectations of commodity costs — mostly steel and aluminum, which have now felt the impact of the beginnings of a current “trade war” — rising $1 billion this year. Though vehicle deliveries doubled year over year, costs are hitting the company hard. Shares are down 5% in the pre-market. For more on GM’s earnings, click here.
Fiat Chrysler shares have also tumbled in today’s pre-market following its disappointing Q2 results, down 8% upon the initial release. As the conference call continues at this hour, we continue to parse through foreign exchange translations.
Tariffs in China have also caused Fiat Chrysler to lower full-year guidance. Related to the company, former company CEO Sergio Marchionne has reportedly died this morning after a battle with ill health. The former Ferrari Chairman and automaking giant was 66.
After the bell, we look for Q2 earnings results from Ford Motor Company (F - Free Report) , the third of the “Big 3.” Expectations are for the company to post 34 cents per share (down nearly 40% year over year) on $35.53 billion in sales (-4.26% from the year-ago quarter). Current fiscal year estimates are for $1.52 per share and $147.05 billion in revenues. Should Ford disappoint as GM and Fiat Chrysler have this morning — and some analyst expect Tesla (TSLA - Free Report) will next week — it will be the second earnings miss in the past three quarters.
We also look toward Facebook earnings results once the market closes this afternoon, with the Zacks Rank #2 (Buy)-rated company expected to fetch $1.75 per share (up more than 32% year over year) on $13.43 billion (+44% from Q2 2017). Facebook has beaten in each of the trailing 4 quarters by an average of 19%. Current full-year estimates are for $7.72 per share on $57.2 billion in sales.
Mark Vickery
Senior Editor
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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