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Auto Stocks' Q4 Earnings Roster for Feb 23: LKQ, VC & More

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The auto sector’s performance has been below par so far in the Q4 earnings season. As of Feb 17, nearly 80% of the sector’s companies had reported results. Per our latest Earnings Preview, these companies recorded 21% year-over-year fall in earnings and 2.1% rise in revenues. In comparison, the 411 S&P 500 companies that had reported through Feb 17 posted 8% growth in earnings and 4.9% rise in revenues.

The weak performance is expected to continue till the end of this earnings season. By the end of Q4, auto sector earnings are projected to decline 20%, while revenues are expected to inch up 0.2%. Meanwhile, total S&P 500 earnings and revenues are expected to increase 6.8% and 3.9% year over year, respectively.

A major issue for most automakers in recent years has been the safety recalls and related costs. Recall-related repair costs have increased the financial burden of these companies. Their margins and bottom line are also strained by the pressure of maintaining attractive incentives and deals to boost volumes. Further, the adverse impact of foreign currency translation remains a potent headwind for many companies.

Meanwhile, strong sales growth in the key markets of U.S., China and Europe has been the primary driving factor for the auto sector in Q4. Also, low fuel prices boosted the sales of higher margin vehicle segments, such as SUVs and light trucks. With these factors in mind, let’s see what awaits these four auto stocks that are slated to release their Q4 results on Feb 23.

LKQ Corporation (LKQ - Free Report)  has an Earnings ESP of 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 39 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The company managed to beat earnings in each of the trailing four quarters, thus delivering a positive average surprise of 4.45% over this period. LKQ carries a Zacks Rank #4 (Sell).

LKQ Corporation Price and EPS Surprise

 

LKQ Corporation Price and EPS Surprise | LKQ Corporation Quote

Visteon Corporation (VC - Free Report)  has an Earnings ESP of 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at $1.35. It posted positive earnings surprises in each of the last four quarters, with a positive average surprise of 47.16%. Visteon currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Visteon Corporation Price and EPS Surprise

 

Visteon Corporation Price and EPS Surprise | Visteon Corporation Quote

Metaldyne Performance Group Inc.  currently has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 25 cents. Metaldyne delivered two positive and two negative earnings surprises in the trailing four quarters, with a negative average surprise of 1.04%. The company carries a Zacks Rank #3 (Hold).

SPX Corporation (SPXC - Free Report)  has an Earnings ESP of 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 61 cents. It posted negative earnings surprises in each of the last four quarters, with a negative average surprise of 85.76%. SPX currently carries a Zacks Rank #3.

SPX Corporation Price and EPS Surprise

 

SPX Corporation Price and EPS Surprise | SPX Corporation Quote

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