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Auto Stocks to Announce Q1 Earnings on Apr 28: GM, GT & More

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So far, the auto sector has recorded a below par performance this earnings season. As of Apr 26, 30% of the sector’s companies reported results. Per our latest Earnings Outlook, these companies recorded 13.2% year-over-year decline in earnings and 1.5% fall in revenues. Comparatively, the 181 S&P 500 companies that reported through Apr 26 recorded a 10% growth in earnings and a 4.3% rise in revenues.

The weak performance is expected to persist for the rest of this earnings season. By Q1-end, auto sector earnings are projected to decline 19.6%, while revenues are expected to inch up 0.2%. Meanwhile, total S&P 500 earnings and revenues are expected to increase 9.7% and 5.9% year over year, respectively.

Automakers are lately facing certain weaknesses. Safety recalls and related cost have become a foremost issue for the majority of manufacturers in recent times. Recall-related repair costs have raised 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. Moreover, the overall industry saw declining sales in the U.S. in Q1.

Alternately, strong sales growth in other major markets, like China and Europe, has been the primary driving factor for the auto sector in Q1. Additionally, low fuel prices enhanced 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 scheduled to release their Q1 results on Apr 28.

General Motors Company (GM - Free Report)  beat earnings in each of the trailing four quarters, delivering an average positive surprise of 19.71%.

Our proven model shows that General Motors is likely to beat earnings this quarter as well. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The company has the right combination of two key ingredients.

The company has an Earnings ESP of +0.69%, as the Most Accurate estimate is pegged at $1.46, higher than the Zacks Consensus Estimate of $1.45. General Motors currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

General Motors Company Price and EPS Surprise

 

General Motors Company Price and EPS Surprise | General Motors Company Quote

The Goodyear Tire & Rubber Company (GT - Free Report)  has an Earnings ESP of 0.00% because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 63 cents. It posted positive earnings surprises in each of the last four quarters, with a positive average surprise of 6.12%. Goodyear Tire currently carries a Zacks Rank #3 as well. You can see the complete list of today’s Zacks #1 Rank stocks here.

Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.

Autoliv, Inc. (ALV - Free Report)  currently has an Earnings ESP of +1.97%, as the Most Accurate estimate is pegged at $1.55, while the Zacks Consensus Estimate stands at $1.52. Autoliv delivered three positive and one negative earnings surprises in the trailing four quarters, with a positive average surprise of 5.85%. The company carries a Zacks Rank #3. The company has the right combination of Zacks Rank and positive Earnings ESP, making a beat likely.

Autoliv, Inc. Price and EPS Surprise

 

Autoliv, Inc. Price and EPS Surprise | Autoliv, Inc. Quote

Adient PLC (ADNT - Free Report)  has an Earnings ESP of +1.64%, as the Most Accurate estimate is pegged at $2.48, higher than the Zacks Consensus Estimate of $2.44. Adient currently carries a Zacks Rank #3. The company has the right combination of Zacks Rank and positive Earnings ESP, making a beat likely.

Adient PLC Price and EPS Surprise

 

Adient PLC Price and EPS Surprise | Adient PLC Quote

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