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ETFs in Focus After General Motors & Ford Q1 Earnings
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U.S. automobile sector behemoths, General Motors (GM - Free Report) and Ford Motors (F - Free Report) released first-quarter 2017 earnings late last week. Strong sales of trucks and SUVs drove the revenue increase for General Motors, whereas recall costs and higher commodity prices resulted in a decline in profits for Ford.
General Motors
Shares of General Motors Company were up 1.5% in pre-market trading on Friday, April 28, 2017, due to the better-than-expected results. Moreover, it beat the Zacks Consensus Estimate on both earnings and revenues (read: General Motors Q1 Earnings and Revenues Top Estimates).
Earnings Discussion
General Motors reported non-GAAP earnings per share (EPS) of $1.70 for the first quarter of 2017, up 34.9% year over year and ahead of the Zacks Consensus Estimate of $1.45. Moreover, revenues of $41.200 billion came ahead of the consensus mark of $40.252 billion. The company reported a 10.5% year-over -year increase in first-quarter 2017 revenues.
Revenue Performance
GM North America revenues increased to $29.302 billion from $26.463 billion a year ago.
GM Europe revenues fell to $4.501 billion from $4.681 billion in the year-ago period.
GM International Operations revenues fell to $2.520 billion from $2.679 billion a year ago.
GM South America revenues rose to $1.959 billion from $1.343 billion a year ago.
Corporate Revenues rose to $174 million from $29 million a year ago.
GM Financial Company revenues increased to $2.879 billion from $2.075 billion a year ago.
Ford
Shares of Ford Motors were up 2.2% in pre-market trading on Thursday, April 27, 2017, as its results beat estimates, but profits fell year over year. The company reported a 3.78% increase in quarterly revenues year over year and successfully beat the Zacks Consensus Estimate in the first-quarter of 2017 on both earnings and revenues (read: Ford Q1 Earnings and Revenues Beat Estimates, Fall Y/Y).
Q1 Performance
Ford reported non-GAAP earnings per share of $0.39, down 42.6% year over year. However, it beat the Zacks Consensus Estimate of $0.34 for first-quarter 2017. Moreover, automotive revenues of $36.475 billion came ahead of the consensus mark of $34.734 billion.
Revenue Performance
North America revenues rose to $24 billion from $23.9 billion a year ago.
South America revenues rose to $1.1 billion from $0.8 billion a year ago.
Europe revenues rose to $7.6 billion from $6.9 billion a year ago.
Middle East & Africa revenues fell to $0.6 billion from $0.9 billion a year ago.
Asia Pacific revenues rose to $3.2 billion from $2.7 billion a year ago.
In the current scenario, we believe it is prudent to discuss the following ETFs that have a relatively high exposure to General Motors and Ford Motors.
It has AUM of $24.37 million and charges a fee of 67 basis points a year. It has 4.69% allocation to Ford and 4.52% allocation to General Motors (as of April 28, 2017). The fund returned 1.12% in the year-to-date time frame (as of April 28, 2017). It closed 0.68% lower on Friday, April 28, 2017.
First Trust NASDAQ Global Auto Index Fund (CARZ - Free Report)
This fund focuses on providing exposure to the global automotive sector. It has AUM of $18.15 million and charges a fee of 70 basis points a year. It has a 7.48% allocation to General Motors and a 7.28% allocation to Ford (as of April 28, 2017). The fund returned 9.83% in the past one year and 5.20% in the year-to-date time frame (as of April 28, 2017). It closed 0.03% lower on Friday, April 28, 2017.
This ETF is a bet on the U.S. Transportations industry. It has AUM of $2.32 million and charges a fee of 60 basis points a year. It has 7.7% allocation to General Motors and a 7.08% allocation to Ford (as of March 31, 2017). The fund returned 16.69% in the past one year and 1.78% in the year-to-date time frame (as of April 28, 2017). It closed 0.65% lower on Friday, April 28, 2017.
Below is a year-to-date performance comparison of the funds, General Motors, and Ford Motors.
Source: Yahoo Finance
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ETFs in Focus After General Motors & Ford Q1 Earnings
U.S. automobile sector behemoths, General Motors (GM - Free Report) and Ford Motors (F - Free Report) released first-quarter 2017 earnings late last week. Strong sales of trucks and SUVs drove the revenue increase for General Motors, whereas recall costs and higher commodity prices resulted in a decline in profits for Ford.
General Motors
Shares of General Motors Company were up 1.5% in pre-market trading on Friday, April 28, 2017, due to the better-than-expected results. Moreover, it beat the Zacks Consensus Estimate on both earnings and revenues (read: General Motors Q1 Earnings and Revenues Top Estimates).
Earnings Discussion
General Motors reported non-GAAP earnings per share (EPS) of $1.70 for the first quarter of 2017, up 34.9% year over year and ahead of the Zacks Consensus Estimate of $1.45. Moreover, revenues of $41.200 billion came ahead of the consensus mark of $40.252 billion. The company reported a 10.5% year-over -year increase in first-quarter 2017 revenues.
Revenue Performance
GM North America revenues increased to $29.302 billion from $26.463 billion a year ago.
GM Europe revenues fell to $4.501 billion from $4.681 billion in the year-ago period.
GM International Operations revenues fell to $2.520 billion from $2.679 billion a year ago.
GM South America revenues rose to $1.959 billion from $1.343 billion a year ago.
Corporate Revenues rose to $174 million from $29 million a year ago.
GM Financial Company revenues increased to $2.879 billion from $2.075 billion a year ago.
Ford
Shares of Ford Motors were up 2.2% in pre-market trading on Thursday, April 27, 2017, as its results beat estimates, but profits fell year over year. The company reported a 3.78% increase in quarterly revenues year over year and successfully beat the Zacks Consensus Estimate in the first-quarter of 2017 on both earnings and revenues (read: Ford Q1 Earnings and Revenues Beat Estimates, Fall Y/Y).
Q1 Performance
Ford reported non-GAAP earnings per share of $0.39, down 42.6% year over year. However, it beat the Zacks Consensus Estimate of $0.34 for first-quarter 2017. Moreover, automotive revenues of $36.475 billion came ahead of the consensus mark of $34.734 billion.
Revenue Performance
North America revenues rose to $24 billion from $23.9 billion a year ago.
South America revenues rose to $1.1 billion from $0.8 billion a year ago.
Europe revenues rose to $7.6 billion from $6.9 billion a year ago.
Middle East & Africa revenues fell to $0.6 billion from $0.9 billion a year ago.
Asia Pacific revenues rose to $3.2 billion from $2.7 billion a year ago.
In the current scenario, we believe it is prudent to discuss the following ETFs that have a relatively high exposure to General Motors and Ford Motors.
WBI Power Factor High Dividend ETF (WBIY - Free Report)
It has AUM of $24.37 million and charges a fee of 67 basis points a year. It has 4.69% allocation to Ford and 4.52% allocation to General Motors (as of April 28, 2017). The fund returned 1.12% in the year-to-date time frame (as of April 28, 2017). It closed 0.68% lower on Friday, April 28, 2017.
First Trust NASDAQ Global Auto Index Fund (CARZ - Free Report)
This fund focuses on providing exposure to the global automotive sector. It has AUM of $18.15 million and charges a fee of 70 basis points a year. It has a 7.48% allocation to General Motors and a 7.28% allocation to Ford (as of April 28, 2017). The fund returned 9.83% in the past one year and 5.20% in the year-to-date time frame (as of April 28, 2017). It closed 0.03% lower on Friday, April 28, 2017.
First Trust Nasdaq Transportation ETF (FTXR - Free Report)
This ETF is a bet on the U.S. Transportations industry. It has AUM of $2.32 million and charges a fee of 60 basis points a year. It has 7.7% allocation to General Motors and a 7.08% allocation to Ford (as of March 31, 2017). The fund returned 16.69% in the past one year and 1.78% in the year-to-date time frame (as of April 28, 2017). It closed 0.65% lower on Friday, April 28, 2017.
Below is a year-to-date performance comparison of the funds, General Motors, and Ford Motors.
Source: Yahoo Finance
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>