Back to top

Image: Bigstock

Auto Stocks' Q2 Earnings Slated on Aug 2: CMI, RACE, MOD

Read MoreHide Full Article

Nearly 63.4% of the S&P 500 members have reported results as of Jul 29, 2016. It is encouraging to note that so far the auto sector has been the second-best performer in terms of earnings among the 16 Zacks sectors. As of Jul 29, nearly 81.8% of the sector’s companies had reported results. These companies recorded 18.8% year-over-year growth in earnings and 5.8% in revenues, per our Earnings Trends report. In comparison, the 317 S&P 500 companies that had reported through Jul 29 posted a 3.3% decline in earnings and a 0.9% fall in revenues.

By the end of Q2, auto sector earnings and revenue growth is projected to be around 15.5% and 2.1%, respectively. Meanwhile, total S&P 500 earnings and revenues are expected to decline 3.4% and 0.4% year over year, respectively.

Revenues of auto companies are being driven by strong sales in major markets like the U.S., Europe and China, in the first half of 2016. Meanwhile, the bottom line is benefiting from an increase in the sales of higher margin vehicle segments, such as SUVs and light trucks, due to low fuel prices.

Nonetheless, the pressure to maintain the attractive incentives and deals may strain the margins for automakers. Sluggishness in some markets and expenses related to safety recalls are other hurdles. The negative impact of foreign currency translation also remains a headwind for the auto sector.

So, let’s see what awaits these three auto stocks that are queued up for earnings releases on Aug 2.

Cummins Inc. (CMI - Free Report) carries a Zacks Rank #3 (Hold). Earnings ESP for the company is currently pegged at -1.86% because the Most Accurate estimate is $2.11, while the Zacks Consensus Estimate is $2.15. We note that the company delivered negative earnings surprises in two of the last four quarters, with an average negative surprise of 2.6% (read more: Cummins Q2 Earnings: What to Expect from the Stock?)

CUMMINS INC Price and EPS Surprise

CUMMINS INC Price and EPS Surprise | CUMMINS INC Quote

Ferrari N.V. (RACE - Free Report) has an Earnings ESP of 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 46 cents. The company, carrying a Zacks Rank #3, delivered a positive earnings surprise of 45.16% in the last quarter (read more: Ferrari: What's in the Cards this Earnings Season?)

FERRARI NV Price and EPS Surprise

FERRARI NV Price and EPS Surprise | FERRARI NV Quote

Modine Manufacturing Company (MOD - Free Report) carries a Zacks Rank #4 (Sell). Earnings ESP for the company is 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 18 cents. We note that the company delivered negative earnings surprises in three of the last four quarters, with an average negative surprise of 25.30%.

MODINE MANUFACT Price and EPS Surprise

MODINE MANUFACT Price and EPS Surprise | MODINE MANUFACT Quote

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cummins Inc. (CMI) - free report >>

Modine Manufacturing Company (MOD) - free report >>

Ferrari N.V. (RACE) - free report >>

Published in