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Auto Stock Roundup: Earnings Highlights of TSLA, F, PCAR, ORLY & LKQ

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Last week, the European Automobile Manufacturers Association released data for commercial vehicle registrations made in June 2021. New registrations edged up 12.4% year over year to 185,573 units, thanks to strong demand in Central European countries. Registrations in major markets like Spain, Italy, France, and Germany showed mixed results. While commercial vehicle registrations in Germany and Italy rose 28.5% and 5.3%, respectively, the same in Spain and France declined 3.1% and 9.4% respectively.

For first-half 2021, demand for commercial vehicles in the European Union (EU) region increased 36.9% year over year to 1 million units. Most markets witnessed double-digit percentage growth during this time period. Registrations in key countries including Italy, Spain, Germany and France rose 53.7%, 38.4%, 21.7% and 36.4% year over year, respectively.

On the earnings front, five S&P 500 auto sector firms unveiled quarterly results last week. Below is the run-down of major takeaways from the earnings releases of Tesla (TSLA - Free Report) , Ford (F - Free Report) , PACCAR (PCAR - Free Report) , O’Reilly Automotive (ORLY - Free Report) and LKQ Corp (LKQ - Free Report) .

While Ford and O’Reilly presently hold a Zacks Rank #1 (Strong Buy) and 2 (Buy), respectively, PACCAR, LKQ and Tesla carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Last Week’s Key Quarterly Releases

1. Tesla hit a milestone in second-quarter 2021, with quarterly profits topping $1 billion for the first time. It reported second-quarter 2021 earnings of $1.45, which surpassed the Zacks Consensus Estimate of 90 cents per share and compared favorably with the year-ago earnings of 44 cents. Total revenues came in at $11,958 million, surpassing the consensus mark of $11,389 million and rising 98.1% year over year. While Tesla has not provided any clear delivery target for 2021, it reiterated its goal of achieving 50% average annual growth in vehicle deliveries over a multi-year horizon. (Tesla Q2 Earnings & Sales Top Mark, FCF Soars 48% Y/Y)

2. Ford posted second-quarter 2021 adjusted earnings of 13 cents per share against the Zacks Consensus Estimate of a loss of 11 cents. This marked the fifth straight earnings beat for the firm. The bottom line turned around from the year-ago loss of 35 cents per share. Its consolidated second-quarter revenues came in at $26.8 billion, up 38% year over year. Ford raised its full-year 2021 EBIT and FCF guidance. FCF is now envisioned in the band of $4-$5 billion, up from the previous guided range of $500 million to $1.5 billion. The company now forecasts full-year 2021 EBIT within $9-$10 billion, higher than the prior view of $5.5-$6.5 billion. (Ford Q2 Earnings Crushes Estimates, '21 View Raised)

3. PACCAR reported earnings of $1.41 per share for second-quarter 2021, beating the Zacks Consensus Estimate of $1.38. Consolidated revenues (including trucks and financial services) came in at $5.84 billion, up from $3.06 billion recorded in the corresponding quarter of 2020. Sales from Trucks, Parts and Others came in at $5,387.6 million, missing the consensus mark of $5,441 million. Revenues in the financial services segment increased to $456.3 million from the year-earlier quarter’s $360.3 million and beat the consensus estimate of $437 million. For 2021, capex is projected at $550-$600 million, while R&D expenses are estimated in the $340-$360 million band. (PACCAR's Q2 Earnings Beat, Revenues Miss Estimates)

4. O’Reilly reported second-quarter 2021 earnings per share of $8.33, surpassing the Zacks Consensus Estimate of $7.28 on remarkable comparable store sales growth. Comps grew 9.9% year over year for the quarter. The bottom line also increased from $7.10 a share recorded in the prior-year quarter. This U.S.-based specialty retailer of automotive parts registered quarterly revenues of $3,466 million, which topped the consensus mark of $3,151 million and grew from the prior-year level of $3,092 million. For 2021, the company envisions earnings per share within $26.80-$27.00 versus the previous view of $24.75-$24.95. (O'Reilly Tops Q2 Earnings & Sales Mark, Ups '21 View)

5. LKQ reported adjusted earnings of $1.13 per share for second-quarter 2021, surpassing the Zacks Consensus Estimate of 74 cents and growing a whopping 113.2% year over year. This aftermarket auto parts distributor registered quarterly revenues of $3,435.1 million, topping the Zacks Consensus Estimate of $3,081 million and surging 30.8% from the year-ago level. For 2021, the company projects adjusted EPS of $3.55-$3.75 per share, up from the previous estimate of $3-$3.2 per share. It envisions generating free cash flow in the range of $950-$1,050 million, up from the earlier forecast of $850-$950 million. (LKQ Corp Beats on Q2 Earnings & Sales, Ups '21 Outlook)

Price Performance

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

Zacks Investment Research
Image Source: Zacks Investment Research

In the past six months, all stocks have increased, apart from Tesla. The past week displayed a mixed price performance, with Harley-Davidson losing the most and Tesla registering the maximum gain.

What’s Next in the Auto Space?

Industry watchers will be keeping a close watch on July 2021 U.S. car sales, which will be coming out this week. Also, stay tuned for quarterly releases of major auto companies including S&P 500 sector components like General Motors, BorgWarner and Cummins, which are set to report this week.