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Auto Stocks' Aug 9 Earnings Preview: HZN, MPAA, WPRT
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The Q2 earnings season is nearly over for the auto sector, with only a few companies left to report. Considering the companies that reported earnings through Aug 5, the auto sector has been the second-best performer among the 16 Zacks sectors. As of Aug 5, auto companies recorded 16.3% year-over-year growth in earnings and 5.2% in revenues, per our Earnings Trends report. In comparison, the 433 S&P 500 companies that had reported by then posted a 4.1% 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 16.3% and 2.1%, respectively. Meanwhile, total S&P 500 earnings and revenues are expected to decline 3.5% 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 slated to release their results on Aug 9.
Horizon Global Corporation carries a Zacks Rank #3 (Hold). Earnings ESP for the company is currently 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 39 cents. We note that the company delivered negative earnings surprises in three of the last four quarters, with an average negative surprise of 8.26%.
Motorcar Parts of America, Inc. (MPAA - Free Report) has an Earnings ESP of 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 38 cents. The company, carrying a Zacks Rank #5 (Strong Sell), delivered a positive earnings surprise in three of the last four quarters. This resulted in a positive average surprise of 4.71%.
Westport Fuel Systems Inc. (WPRT - Free Report) carries a Zacks Rank #2 (Buy). The Earnings ESP for the company is +9.09% as the Most Accurate estimate is pegged at a loss of 20 cents while the Zacks Consensus Estimate is of a loss of 22 cents. We note that the company delivered negative earnings surprises in each of the trailing four quarters, with an average negative surprise of 50% (read more: What Awaits Westport Innovations in Q2 Earnings?).
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Auto Stocks' Aug 9 Earnings Preview: HZN, MPAA, WPRT
The Q2 earnings season is nearly over for the auto sector, with only a few companies left to report. Considering the companies that reported earnings through Aug 5, the auto sector has been the second-best performer among the 16 Zacks sectors. As of Aug 5, auto companies recorded 16.3% year-over-year growth in earnings and 5.2% in revenues, per our Earnings Trends report. In comparison, the 433 S&P 500 companies that had reported by then posted a 4.1% 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 16.3% and 2.1%, respectively. Meanwhile, total S&P 500 earnings and revenues are expected to decline 3.5% 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 slated to release their results on Aug 9.
Horizon Global Corporation carries a Zacks Rank #3 (Hold). Earnings ESP for the company is currently 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 39 cents. We note that the company delivered negative earnings surprises in three of the last four quarters, with an average negative surprise of 8.26%.
HORIZON GLBL CP Price and EPS Surprise
HORIZON GLBL CP Price and EPS Surprise | HORIZON GLBL CP Quote
Motorcar Parts of America, Inc. (MPAA - Free Report) has an Earnings ESP of 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 38 cents. The company, carrying a Zacks Rank #5 (Strong Sell), delivered a positive earnings surprise in three of the last four quarters. This resulted in a positive average surprise of 4.71%.
MOTORCAR PARTS Price and EPS Surprise
MOTORCAR PARTS Price and EPS Surprise | MOTORCAR PARTS Quote
Westport Fuel Systems Inc. (WPRT - Free Report) carries a Zacks Rank #2 (Buy). The Earnings ESP for the company is +9.09% as the Most Accurate estimate is pegged at a loss of 20 cents while the Zacks Consensus Estimate is of a loss of 22 cents. We note that the company delivered negative earnings surprises in each of the trailing four quarters, with an average negative surprise of 50% (read more: What Awaits Westport Innovations in Q2 Earnings?).
WESTPORT FUEL Price and EPS Surprise
WESTPORT FUEL Price and EPS Surprise | WESTPORT FUEL Quote
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