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The Zacks Analyst Blog Highlights General Motors, Ford, PACCAR, LKQ and O'Reilly Automotive

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For Immediate Release

Chicago, IL – May 3, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: General Motors (GM - Free Report) , Ford (F - Free Report) , PACCAR, Inc. (PCAR - Free Report) , LKQ Corp (LKQ - Free Report) and O'Reilly Automotive (ORLY - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Auto Stock Roundup: Q1 Earnings Edition

Last week, five S&P 500 auto companies came out with their first-quarter 2022 earnings release. While General Motors beat Q1 earnings estimates, Ford missed the same. Both the U.S. auto giants witnessed a year-over-year fall in sales and profits.

Meanwhile, trucking giant PACCAR, Inc. not just delivered a comprehensive beat but also recorded year-over-year growth in sales and earnings. The aftermarket auto parts distributor LKQ Corp also put up an impressive Q1 show, with earnings and revenues beating expectations and increasing on a year-over-year basis. Auto parts retailer O'Reilly Automotive also impressed investors with strong results.

Each of these five companies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Inside the Headlines

General Motors reported first-quarter 2022 adjusted earnings of $2.09 per share, topping the Zacks Consensus Estimate of $1.56. Better-than-expected contributions from North America, International and Financial segments drove the outperformance. The bottom line, however, compares unfavorably with the year-ago quarter's earnings of $2.25 per share. Revenues of $35,979 million missed the Zacks Consensus Estimate of $36,252.5 million. The top line compares favorably with the year-ago figure of $32,474 million.

General Motors had cash and cash equivalents of $16,349 million as of Mar 31, 2022. The long-term automotive debt at the end of the quarter was $16,155 million. The company recorded an adjusted automotive free cash flow of $6 million in first-quarter 2022. For 2022, the company expects full-year net income to be in a range of $9.6-$11.2 billion, higher than the previous range of $9.4-$10.8 billion. The adjusted EBIT forecast remains unchanged in the range of $13.0 billion to $15.0 billion. The estimate for adjusted EPS was increased from the previous range of $6.25-$7.25 to $6.5-$7.5.

Ford reported adjusted earnings of 38 cents per share in first-quarter 2022, missing the Zacks Consensus Estimate of 39 cents. Lower-than-expected profits in North America and a wider-than-expected pretax loss in China led to this underperformance.  The bottom line compares unfavorably with the year-ago quarter's earnings of 89 cents. The company's consolidated first-quarter revenues came in at $34.5 billion, down 4.9% year over year.In the first quarter, the total revenues from the automotive business declined 4% to $32.1 billion and missed the Zacks Consensus Estimate of $39.1 billion.

Ford reported a negative adjusted FCF of $580 million during the quarter. It had cash and cash equivalents of $10,579 million as of Mar 31, 2022 and the automotive long-term debt stood at $17,158 million. Ford expects adjusted EBIT for 2022 between $11.5 billion and $12.5 billion, implying an uptick of 15-25% from the 2021 level. Moreover, 2022 vehicle wholesale volumes are anticipated to jump 10% to 15%. Adjusted FCF is envisioned in the range of $5.5-6.5 billion for 2022, suggesting a jump from $4.6 billion recorded in 2021.

PACCAR reported earnings of $1.72 per share in first-quarter 2022, topping the Zacks Consensus Estimate of $1.51 and rising from the year-ago figure of $1.35. Higher-than-expected revenues across all segments resulted in the outperformance. Consolidated revenues (including trucks and financial services) came in at $6,472.6 million, up from $5,845.5 million recorded in the corresponding quarter of 2021. Sales from Trucks, Parts and Others were $6,106.4 million, beating the consensus mark of $5,781 million.

PACCAR's cash and marketable debt securities amounted to $4,672.4 million as of Mar 31, 2022, compared with $4,813 million on Dec 31, 2021. Capex and R&D expenses for 2022 are envisioned in the band of $425-$475 million and $350-$400 million, respectively. The company declared a cash dividend of 34 cents in the reported quarter.

LKQ reported adjusted earnings of $1 per share in first-quarter 2022, surpassing the Zacks Consensus Estimate of 91 cents and increasing 6.4% year over year from 94 cents. This outperformance was driven by the higher-than-anticipated revenues from the North American and European segments. LKQ registered quarterly revenues of $3,348 million, beating the Zacks Consensus Estimate of $3,279.7 million. In addition, the top line climbed 5.6% from the year-ago level of $3,170.8 million. The parts and services organic revenues also increased 6.9% year over year.

LKQ had cash and cash equivalents of $327 million on Mar 31, 2022. The long-term debt (excluding the current portion) amounted to $2,680 million as of Mar 31, 2022. For 2022, the company expects adjusted EPS in the band of $3.80-$4.10, up from the prior view of $3.72-$4.02 per share. The company's estimate of free cash flow remains the same, at a minimum of $1 billion. Operating cash flow is expected to be $1.3 billion. It forecasts organic revenue growth for parts and services in the range of 4.5%-6.5%, up from 3-5% estimated earlier.

O'Reilly reported first-quarter 2022 adjusted earnings per share of $7.17, missing the Zacks Consensus Estimate of $7.43. The bottom line, however, increased from $7.06 a share recorded in the prior-year quarter. This automotive parts retailer registered quarterly revenues of $3,296 million, beating the consensus mark of $3,283.3 million. The top line was also 6.6% higher than the prior-year figure of $3,090.9 million. Comps grew 4.8% year over year, topping the Zacks Consensus Estimate of 4.17%.

O'Reilly had cash and cash equivalents of $191.5 million as of Mar 31, 2022, lower than $611 million in the year-ago quarter. Its long-term debt was $3,828 million, higher than the year-ago level of $3,824.3 million. For 2022, ORLY expects total revenues within the range of $14.2-$14.5 billion. Earnings per share are estimated in the band of $32.35-$32.85. The company forecasts comparable store sales growth within 5-7%. Free cash flow remains in the band of $1.3-$1.6 billion and capital expenditures within $650-$750 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.

What's Next in the Auto Space?

Stay tuned for quarterly results of a host of auto companies that are slated to report this week.Also, watch out for any update on how automakers will tackle the semiconductor shortage —aggravated by the Russia-Ukraine war and rising COVID-19 infections— and make changes in business operations.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.