We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Roundup: GM's Dividend & Buyback Boost, LCID's Narrower Q4 Loss & More
Read MoreHide Full Article
According to S&P Global Mobility, U.S. auto sales for February 2025 are projected at 1.23 million units, with a seasonally adjusted annual rate (SAAR) of 16.1 million—up from 15.6 million in January. While pricing, inventory and incentives support growth, uncertain economic and policy conditions may limit sustained demand momentum.
Auto parts providers Advance Auto Parts (AAP - Free Report) and Standard Motor Products (SMP - Free Report) released fourth-quarter 2024 results last week. Both companies topped earnings and sales estimates. California-based electric vehicle (EV) startup Lucid Group (LCID - Free Report) also reported quarterly results, incurring lower-than-expected loss. Meanwhile, U.S. legacy automaker General Motors (GM - Free Report) impressed investors with dividend hike and buyback authorization. EV and tech giant Tesla (TSLA - Free Report) also made it to the top stories with plans to update Models S and X by the end of the year. The company also kicked off the approval process of robotaxis in California.
Last Week’s Top Stories
General Motors announced a 25% dividend hike and a $6 billion share buyback program. The new dividend of 15 cents per share (up from the current 12/cents a share) will take effect with GM’s next planned payout to be announced in April 2025. Meanwhile, under the $6 billion repurchase plan, GM will execute a $2 billion accelerated share repurchase, expected to be wrapped up by the second quarter of 2025, leaving $4.3 billion for future buybacks.
GM’s strong financials support these investor-friendly moves. The company generated $14 billion in adjusted auto free cash flow last year and returned nearly $7.6 billion to shareholders via dividends and buybacks. It also met its goal of reducing outstanding shares below 1 billion, closing 2024 at 995 million shares. With $35.5 billion in total automotive liquidity, including $21.7 billion in cash, GM’s balance sheet remains robust.
Advance Auto reported an adjusted loss of $1.18 per share for the fourth quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of $1.38. The company had incurred an adjusted loss of 59 cents in the year-ago quarter. AAP generated net revenues of $2 billion, which topped the Zacks Consensus Estimate of $1.93 billion. Comparable store sales decreased 0.9% year over year. We projected a decline of 2% for the same. The top line decreased from $2.46 billion generated in the year-ago quarter.
Advance Auto expects 2025 net sales from continuing operations in the range of $8.4-$8.6 billion. It aims to open 30 new stores in 2025. Comparable store sales are projected in the range of 0.5-1.5%. Adjusted operating income margin from continuing operations is envisioned in the range of 2-3%. AAP expects 2025 capex to be approximately $300 million. Net sales and adjusted operating income margin for 2027 are expected to be $9 billion and 7%, respectively. AAP targets to open 50-70 stores in 2027, with comps envisioned to grow at a positive low-single-digit percentage.
Standard Motor posted fourth-quarter 2024 adjusted EPS of 47 cents, which beat the Zacks Consensus Estimate of 37 cents and rose from 37 cents reported in the prior-year quarter. Total revenues rose to $343 million from $291 million reported in the fourth quarter of 2023. The reported figure also beat the Zacks Consensus Estimate of $297 million. Gross profit rose to $101 million from the year-ago quarter’s $81.5 million. Operating income fell to $3.9 million from $9.9 million reported in the year-ago quarter.
Standard Motor had $44.4 million in cash as of Dec. 31, 2024, compared with $32.5 million as of Dec. 31, 2023. Long-term debt totaled $535.2 million as of Dec. 31, 2024, compared with $151.2 million as of Dec. 31, 2023. The company hiked its quarterly dividend by 6.9% to 31 cents per share. The dividend will be paid today to stockholders of record as of Feb. 14, 2025. For 2025, the company expects sales growth to be in the mid-teens. It expects adjusted EBITDA in the range of 10-11% of total revenues.
Lucid reported a fourth-quarter 2024 loss of 22 cents per share, narrower than the Zacks Consensus Estimate of a loss of 26 cents as well as the year-ago period’s loss of 29 cents. Revenues of $234.5 million beat the Zacks Consensus Estimate of $225 million and increased 49% on a year-over-year basis, primarily driven by strong vehicle deliveries. The company reported total Lucid Air customer deliveries of 3,099 units in the quarter under discussion, up from 1,734 units in the year-ago quarter.
Total gross loss amounted to $208.8 million compared with a gross loss of $252.9 million in the prior-year quarter. Total operating expenses amounted to $524.2 million, up from $484 million in the prior-year quarter. In 2025, LCID expects to produce approximately 20,000 vehicles. Capital expenditures are expected to be roughly $1.4 billion. The company expects sufficient liquidity into the second half of 2026. It has scheduled the midsize platform start of production for late 2026.
Tesla is set to update its Model S and X vehicles later this year. In a recent podcast interview, Lars Moravy, Tesla’s vice president of Engineering, confirmed that a refresh is planned for the Model S and Model X in late 2025. While Moravy did not provide specific details, he acknowledged that these foundational models deserve a significant overhaul. One of the most notable upgrades is expected to be a switch to 4680 battery cells, replacing the older 18650 format. The Cybertruck’s production has ramped up 4680 cell availability. Tesla could use this surplus to make the Model S and Model X more cost-effective.
In a separate development,TSLA has taken a major step toward launching its long-anticipated autonomous ride-hailing service, filing for regulatory approval in California. It has applied for a transportation charter-party carrier permit from the California Public Utilities Commission, signaling its intent to own and operate a fleet of ride-sharing vehicles in the state.
Price Performance
The following table shows the price movement of some of the major auto players over the last week and the six-month period.
Image Source: Zacks Investment Research
What's Next in the Auto Space?
Auto parts retailer AutoZone will unveil its quarterly results tomorrow. Industry watchers will keep a tab on vehicle sales in China for February. Watch for usual updates in the auto and EV industry.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Auto Roundup: GM's Dividend & Buyback Boost, LCID's Narrower Q4 Loss & More
According to S&P Global Mobility, U.S. auto sales for February 2025 are projected at 1.23 million units, with a seasonally adjusted annual rate (SAAR) of 16.1 million—up from 15.6 million in January. While pricing, inventory and incentives support growth, uncertain economic and policy conditions may limit sustained demand momentum.
Auto parts providers Advance Auto Parts (AAP - Free Report) and Standard Motor Products (SMP - Free Report) released fourth-quarter 2024 results last week. Both companies topped earnings and sales estimates. California-based electric vehicle (EV) startup Lucid Group (LCID - Free Report) also reported quarterly results, incurring lower-than-expected loss. Meanwhile, U.S. legacy automaker General Motors (GM - Free Report) impressed investors with dividend hike and buyback authorization. EV and tech giant Tesla (TSLA - Free Report) also made it to the top stories with plans to update Models S and X by the end of the year. The company also kicked off the approval process of robotaxis in California.
Last Week’s Top Stories
General Motors announced a 25% dividend hike and a $6 billion share buyback program. The new dividend of 15 cents per share (up from the current 12/cents a share) will take effect with GM’s next planned payout to be announced in April 2025. Meanwhile, under the $6 billion repurchase plan, GM will execute a $2 billion accelerated share repurchase, expected to be wrapped up by the second quarter of 2025, leaving $4.3 billion for future buybacks.
GM’s strong financials support these investor-friendly moves. The company generated $14 billion in adjusted auto free cash flow last year and returned nearly $7.6 billion to shareholders via dividends and buybacks. It also met its goal of reducing outstanding shares below 1 billion, closing 2024 at 995 million shares. With $35.5 billion in total automotive liquidity, including $21.7 billion in cash, GM’s balance sheet remains robust.
GM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Advance Auto reported an adjusted loss of $1.18 per share for the fourth quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of $1.38. The company had incurred an adjusted loss of 59 cents in the year-ago quarter. AAP generated net revenues of $2 billion, which topped the Zacks Consensus Estimate of $1.93 billion. Comparable store sales decreased 0.9% year over year. We projected a decline of 2% for the same. The top line decreased from $2.46 billion generated in the year-ago quarter.
Advance Auto expects 2025 net sales from continuing operations in the range of $8.4-$8.6 billion. It aims to open 30 new stores in 2025. Comparable store sales are projected in the range of 0.5-1.5%. Adjusted operating income margin from continuing operations is envisioned in the range of 2-3%. AAP expects 2025 capex to be approximately $300 million. Net sales and adjusted operating income margin for 2027 are expected to be $9 billion and 7%, respectively. AAP targets to open 50-70 stores in 2027, with comps envisioned to grow at a positive low-single-digit percentage.
Standard Motor posted fourth-quarter 2024 adjusted EPS of 47 cents, which beat the Zacks Consensus Estimate of 37 cents and rose from 37 cents reported in the prior-year quarter. Total revenues rose to $343 million from $291 million reported in the fourth quarter of 2023. The reported figure also beat the Zacks Consensus Estimate of $297 million. Gross profit rose to $101 million from the year-ago quarter’s $81.5 million. Operating income fell to $3.9 million from $9.9 million reported in the year-ago quarter.
Standard Motor had $44.4 million in cash as of Dec. 31, 2024, compared with $32.5 million as of Dec. 31, 2023. Long-term debt totaled $535.2 million as of Dec. 31, 2024, compared with $151.2 million as of Dec. 31, 2023. The company hiked its quarterly dividend by 6.9% to 31 cents per share. The dividend will be paid today to stockholders of record as of Feb. 14, 2025. For 2025, the company expects sales growth to be in the mid-teens. It expects adjusted EBITDA in the range of 10-11% of total revenues.
Lucid reported a fourth-quarter 2024 loss of 22 cents per share, narrower than the Zacks Consensus Estimate of a loss of 26 cents as well as the year-ago period’s loss of 29 cents. Revenues of $234.5 million beat the Zacks Consensus Estimate of $225 million and increased 49% on a year-over-year basis, primarily driven by strong vehicle deliveries. The company reported total Lucid Air customer deliveries of 3,099 units in the quarter under discussion, up from 1,734 units in the year-ago quarter.
Total gross loss amounted to $208.8 million compared with a gross loss of $252.9 million in the prior-year quarter. Total operating expenses amounted to $524.2 million, up from $484 million in the prior-year quarter. In 2025, LCID expects to produce approximately 20,000 vehicles. Capital expenditures are expected to be roughly $1.4 billion. The company expects sufficient liquidity into the second half of 2026. It has scheduled the midsize platform start of production for late 2026.
Tesla is set to update its Model S and X vehicles later this year. In a recent podcast interview, Lars Moravy, Tesla’s vice president of Engineering, confirmed that a refresh is planned for the Model S and Model X in late 2025. While Moravy did not provide specific details, he acknowledged that these foundational models deserve a significant overhaul. One of the most notable upgrades is expected to be a switch to 4680 battery cells, replacing the older 18650 format. The Cybertruck’s production has ramped up 4680 cell availability. Tesla could use this surplus to make the Model S and Model X more cost-effective.
In a separate development,TSLA has taken a major step toward launching its long-anticipated autonomous ride-hailing service, filing for regulatory approval in California. It has applied for a transportation charter-party carrier permit from the California Public Utilities Commission, signaling its intent to own and operate a fleet of ride-sharing vehicles in the state.
Price Performance
The following table shows the price movement of some of the major auto players over the last week and the six-month period.
Image Source: Zacks Investment Research
What's Next in the Auto Space?
Auto parts retailer AutoZone will unveil its quarterly results tomorrow. Industry watchers will keep a tab on vehicle sales in China for February. Watch for usual updates in the auto and EV industry.