We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Auto Stock Roundup: Earnings Report Card of GM, F, PCAR, ORLY & LKQ
Read MoreHide Full Article
Last week, the European Automobile Manufacturers Association released data for commercial vehicle registrations made in September 2021. New registrations declined 12.3% year over year amid persistent chip crunch, which impacted sales volumes across all major markets. Registrations in Spain, Italy, France, and Germany fell 26.7%, 10.4%, 16.1%, and 18.2%, respectively. Meanwhile, for the first nine months of 2021, demand for commercial vehicles in the European Union region increased 19.1% year over year to 1.4 million units. Registrations in key countries including Italy, Spain, Germany, and France rose 29.7%, 10.4%, 8.5%, and 16.8% year over year, respectively.
On the earnings front, five S&P 500 auto sector companies — namely General Motors (GM - Free Report) , Ford (F - Free Report) , PACCAR (PCAR - Free Report) , O’Reilly Automotive (ORLY - Free Report) , and LKQ Corp. (LKQ - Free Report) — unveiled quarterly results last week. While O’Reilly carries a Zacks Rank #2 (Buy), General Motors, Ford and LKQ Corp. carry a Zacks Rank #3 (Hold). Meanwhile, PCCAR holds a Zacks Rank #4 (Sell) currently.
Here’s a rundown of earnings highlights of each of these firms.
1. General Motors reported adjusted earnings of $1.52 per share for third-quarter 2021, topping the Zacks Consensus Estimate of $1.07. The bottom line, however, compared unfavorably with the year-ago earnings of $2.83 per share. Revenues of $26,779 million missed the Zacks Consensus Estimate of $31,167 million. The top-line figure also compared unfavorably with the year-ago figure of $35,480 million. For 2021, this Zacks Rank #3 company now expects adjusted EPS in the band of $5.70-$6.70, up from the previous forecast of $5.40-$6.40. (General Motors Q3 Earnings Top, Sales Miss Mark, '21 View Up)
2. Ford reported adjusted earnings of 51 cents per share for third-quarter 2021, surpassing the Zacks Consensus Estimate of 28 cents. The bottom line, however, compared unfavorably with the year-ago earnings of 65 cents per share. The company’s consolidated third-quarter revenues came in at $35,683 million, down 4.8% year over year. Ford also announced the decision to reinstate its regular dividend starting from the fourth quarter, more than a year and a half after suspending payments on account of the coronavirus pandemic. (Ford Beats on Q3 Earnings, Ups '21 View, Reinstates Dividend)
3. LKQ Corp. reported adjusted earnings of $1.02 per share for third-quarter 2021, surpassing the Zacks Consensus Estimate of 86 cents. The bottom line also grew 36% year on year. This aftermarket auto parts distributor registered quarterly revenues of $3,296.6 million, marginally beating the Zacks Consensus Estimate of $3,237 million. In addition, the top-line figure climbed 8.2% from the year-ago level of $3,047.7 million. For 2021, the company now projects adjusted EPS of $3.78-$3.88 per share, up from the previous estimate of $3.55-$3.75. (LKQ Crushes Q3 Earnings & Sales Estimates, Ups '21 View (Revised))
4. PACCAR reported earnings of $1.08 per share for third-quarter 2021, missing the Zacks Consensus Estimate of $1.21. Consolidated revenues (including trucks and financial services) came in at $5,146.8 million, up from $4,936 million recorded in the corresponding quarter of 2020. Sales from Trucks, Parts and Others came in at $4,737.7 million, topping the consensus mark of $4,487 million. For 2021, capex is projected at $525-$550 million, while R&D expenses are estimated in the $320-$340 million band. (PACCAR Q3 Earnings Miss on Weak Profits From Trucks Unit)
5. O’Reilly Automotive reported third-quarter 2021 earnings per share of $8.07, surpassing the Zacks Consensus Estimate of $6.99 on the back of comparable store sales growth. Comps grew 6.7% year over year for the quarter versus the Zacks Consensus Estimate of a decline of 15.02%. The bottom line also increased from $7.07 a share recorded in the prior-year quarter. Quarterly revenues of $3,479.6 million topped the consensus mark of $3,217 million and rose from the prior-year level of $3,207.6 million. (O'Reilly Q3 Earnings Beat Estimates on Comps Growth)
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 but General Motors, Honda and Harley-Davidson have registered gains. The past week also displayed a mixed performance, with Tesla registering the maximum gains and General Motors losing the most.
What’s Next in the Auto Space?
Industry watchers will be keeping a close watch on October 2021 U.S. car sales, which will be coming out this week. Investors will keep a tab on the quarterly releases of Japan-based auto biggies Honda (HMC - Free Report) and Toyota (TM - Free Report) that are set to report this week. Also, stay tuned for earnings releases of various auto equipment providers including BorgWarner, Magna and Tenneco this week.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Auto Stock Roundup: Earnings Report Card of GM, F, PCAR, ORLY & LKQ
Last week, the European Automobile Manufacturers Association released data for commercial vehicle registrations made in September 2021. New registrations declined 12.3% year over year amid persistent chip crunch, which impacted sales volumes across all major markets. Registrations in Spain, Italy, France, and Germany fell 26.7%, 10.4%, 16.1%, and 18.2%, respectively. Meanwhile, for the first nine months of 2021, demand for commercial vehicles in the European Union region increased 19.1% year over year to 1.4 million units. Registrations in key countries including Italy, Spain, Germany, and France rose 29.7%, 10.4%, 8.5%, and 16.8% year over year, respectively.
On the earnings front, five S&P 500 auto sector companies — namely General Motors (GM - Free Report) , Ford (F - Free Report) , PACCAR (PCAR - Free Report) , O’Reilly Automotive (ORLY - Free Report) , and LKQ Corp. (LKQ - Free Report) — unveiled quarterly results last week. While O’Reilly carries a Zacks Rank #2 (Buy), General Motors, Ford and LKQ Corp. carry a Zacks Rank #3 (Hold). Meanwhile, PCCAR holds a Zacks Rank #4 (Sell) currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here’s a rundown of earnings highlights of each of these firms.
1. General Motors reported adjusted earnings of $1.52 per share for third-quarter 2021, topping the Zacks Consensus Estimate of $1.07. The bottom line, however, compared unfavorably with the year-ago earnings of $2.83 per share. Revenues of $26,779 million missed the Zacks Consensus Estimate of $31,167 million. The top-line figure also compared unfavorably with the year-ago figure of $35,480 million. For 2021, this Zacks Rank #3 company now expects adjusted EPS in the band of $5.70-$6.70, up from the previous forecast of $5.40-$6.40. (General Motors Q3 Earnings Top, Sales Miss Mark, '21 View Up)
2. Ford reported adjusted earnings of 51 cents per share for third-quarter 2021, surpassing the Zacks Consensus Estimate of 28 cents. The bottom line, however, compared unfavorably with the year-ago earnings of 65 cents per share. The company’s consolidated third-quarter revenues came in at $35,683 million, down 4.8% year over year. Ford also announced the decision to reinstate its regular dividend starting from the fourth quarter, more than a year and a half after suspending payments on account of the coronavirus pandemic. (Ford Beats on Q3 Earnings, Ups '21 View, Reinstates Dividend)
3. LKQ Corp. reported adjusted earnings of $1.02 per share for third-quarter 2021, surpassing the Zacks Consensus Estimate of 86 cents. The bottom line also grew 36% year on year. This aftermarket auto parts distributor registered quarterly revenues of $3,296.6 million, marginally beating the Zacks Consensus Estimate of $3,237 million. In addition, the top-line figure climbed 8.2% from the year-ago level of $3,047.7 million. For 2021, the company now projects adjusted EPS of $3.78-$3.88 per share, up from the previous estimate of $3.55-$3.75. (LKQ Crushes Q3 Earnings & Sales Estimates, Ups '21 View (Revised))
4. PACCAR reported earnings of $1.08 per share for third-quarter 2021, missing the Zacks Consensus Estimate of $1.21. Consolidated revenues (including trucks and financial services) came in at $5,146.8 million, up from $4,936 million recorded in the corresponding quarter of 2020. Sales from Trucks, Parts and Others came in at $4,737.7 million, topping the consensus mark of $4,487 million. For 2021, capex is projected at $525-$550 million, while R&D expenses are estimated in the $320-$340 million band. (PACCAR Q3 Earnings Miss on Weak Profits From Trucks Unit)
5. O’Reilly Automotive reported third-quarter 2021 earnings per share of $8.07, surpassing the Zacks Consensus Estimate of $6.99 on the back of comparable store sales growth. Comps grew 6.7% year over year for the quarter versus the Zacks Consensus Estimate of a decline of 15.02%. The bottom line also increased from $7.07 a share recorded in the prior-year quarter. Quarterly revenues of $3,479.6 million topped the consensus mark of $3,217 million and rose from the prior-year level of $3,207.6 million. (O'Reilly Q3 Earnings Beat Estimates on Comps Growth)
Price Performance
The following table shows the price movement of some of the major auto players over the past week and six-month period.
Company Last Week Last 6 Months
GM -5.8% -4.7%
F 4.9% 46.9%
TSLA 22.5% 62.7%
TM 1.8% 16%
HMC -1.1% -1.7%
HOG -1.1% -25%
AAP -2.8% 11.8%
AZO -2.6% 21%
In the past six months, all stocks but General Motors, Honda and Harley-Davidson have registered gains. The past week also displayed a mixed performance, with Tesla registering the maximum gains and General Motors losing the most.
What’s Next in the Auto Space?
Industry watchers will be keeping a close watch on October 2021 U.S. car sales, which will be coming out this week. Investors will keep a tab on the quarterly releases of Japan-based auto biggies Honda (HMC - Free Report) and Toyota (TM - Free Report) that are set to report this week. Also, stay tuned for earnings releases of various auto equipment providers including BorgWarner, Magna and Tenneco this week.