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Auto Stock Roundup: Earnings Snapshots of TSLA, F, PCAR, ORLY and LKQ

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The bygone week was a busy one for the auto sector, with a number of companies unveiling quarterly numbers. Each of the five S&P 500 auto firms that reported first-quarter 2021 results last week— namely Tesla (TSLA - Free Report) PACCAR (PCAR - Free Report) , Ford (F - Free Report) , O’Reilly Automotive (ORLY - Free Report) and LKQ Corp (LKQ - Free Report) — managed to surpass earnings estimates. Before we delve into the major takeaways from the results of these companies, let’s take a quick look at the electrification strides undertaken by legacy automakers like Ford, General Motors (GM - Free Report) and Toyota (TM - Free Report) during the week ended Apr 30.

Ford announced the decision to establish a new global battery center of excellence — Ford Ion Park — in Southeast Michigan to accelerate the research and development of battery cell technology. (Ford Steps Up Battery R&D, To Establish New Battery Center)

General Motors launched Ultium Charge 360, a holistic charging approach aimed at consolidating charging networks, GM vehicle mobile apps, and other products and services to enhance the overall charging experience for customers. (General Motors Heats Up EV Game, Launches Ultium Charge 360).

Toyota announced its decision to invest $803 million to revamp its factory in Indiana to manufacture the electrified version of two new sport-utility vehicles, one of which will be sold by its luxury Lexus brand. (Toyota to Invest in Indiana, Revs Up Electrification Goals)

Tidbits from Key Quarterly Releases

Tesla reported first-quarter 2021 earnings of 93 cents, which surpassed the Zacks Consensus Estimate of 79 cents per share. The bottom line also compared favorably with the year-ago earnings of 25 cents a share. Total revenues came in at $10,389 million, surpassing the consensus mark of $9,920 million and rising 74% year over year. The EV king generated free cash flow of $293 million for the quarter. While Tesla has not provided any clear delivery target for 2021, it just released a statement mentioning that it anticipates achieving 50% average annual growth in vehicle deliveries over a multi-year horizon. 

PACCAR reported earnings of $1.35 per share for first-quarter 2021, beating the Zacks Consensus Estimate of $1.27 and increasing from the prior-year figure of $1.03. Consolidated revenues (including trucks and financial services) came in at $5.85 billion, up from $5.16 billion recorded in the corresponding quarter of 2020. Also, sales from the Trucks, Parts and Others unit came in at $5,413.5 million, topping the consensus mark of $5,201 million. For 2021, capex is projected at $575-$625 million, while R&D expenses are estimated in the $350-$375 million band.

Ford posted first-quarter 2021 adjusted earnings of 89 cents per share, breezing past the Zacks Consensus Estimate of 16 cents and turning around from the year-ago loss of 23 cents. The company generated automotive revenues of $33.5 billion, which outpaced the Zacks Consensus Estimate of $31.1 billion. Amid the acute chip shortage, Ford lowered its guidance and expects a $2.5 billion hit to earnings. Consequently, it now anticipates full-year 2021 adjusted EBIT in the band of $5.5-$6.5 billion. Guidance for adjusted FCF has also been cut and is currently envisioned in the range of $500-$1.5 billion versus the prior forecast of $3.5-4.5 billion.

O’Reilly reported first-quarter 2021 earnings per share of $7.06, surpassing the Zacks Consensus Estimate of $5.36, thanks to remarkable comparable store sales growth. The bottom line also increased 77.8% from $3.97 a share recorded in the prior-year quarter. For 2021, it now projects total revenues within $11.8-$12.1 billion, higher than the prior guided range of $11.5-$11.8 billion. Earnings per share are envisioned within $24.75-$24.95, comparing favorably with the previous view of $22.7-$22.9. Furthermore, the company now expects comparable store sales to rise 1-3% versus a decline of upto 2% projected earlier.

LKQ reported adjusted earnings of 94 cents per share for first-quarter 2021, surpassing the Zacks Consensus Estimate of 63 cents. This aftermarket auto parts distributor registered quarterly revenues of $3,170.8 million, topping the Zacks Consensus Estimate of $2,952 million. For 2021, the company projects EPS in the range of $2.68-$2.88 per share and adjusted EPS of $3-$3.2, up from the previous estimate of $2.40-$2.60 and $2.65-$2.85, respectively. It envisions generating free cash flow in the range of $850-$950 million.

Price Performance

The following table shows the price movement of some of the major auto players over the past week and six-month period.

In the past six months, all stocks have increased, with Tesla being the maximum gainer. Over the past week, all stocks have declined apart from Harley-Davidson, AutoZone and Advance Auto Parts.

What’s Next in the Auto Space?

Car enthusiasts will be keeping a close watch on April 2021 U.S. car sales, which are set to be released soon. Investors in the auto sector would be closely tracking the sales reports of auto biggies including General Motors, Ford, Volkswagen, Honda and Toyota. Meanwhile, they are also awaiting the quarterly releases of General Motors, Cummins, CNH Industrial, Adient, Lear Corp. that are scheduled to report results during the week.

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