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Auto Stock Roundup: Earnings Report Card of GM, F, PCAR, ORLY & LKQ

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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.