Back to top

The Zacks Analyst Blog Highlights: Ford Motor, General Motors, Honda Motor, Tesla and Penske Automotive Group

Read MoreHide Full Article

For Immediate Release

Chicago, IL – May 05, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Ford Motor Company (NYSE: (F - Free Report) Free Report ), General Motors Company (NYSE: (GM - Free Report) Free Report ), Honda Motor Company, Ltd. (NYSE: (HMC - Free Report) Free Report ), Tesla, Inc. (NASDAQ: TSLA Free Report ) and Penske Automotive Group, Inc. (NYSE: PAG Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Thursday’s Analyst Blog:

Auto Stock Roundup: F, GM, HMC, TSLA, PAG

The last week saw a flurry of earnings in the auto sector. Despite earnings mostly beating estimates, majority of shares lost on weak projections for the year.

Ford Motor Company’s (NYSE: (F - Free Report) Free Report ) first-quarter earnings declined year over year but beat the Zacks Consensus Estimate. General Motors Company’s (NYSE: (GM - Free Report) Free Report ) first-quarter earnings as well as revenues saw double-digit growth and surpassed estimates.

Honda Motor Company, Ltd. (NYSE: (HMC - Free Report) Free Report ) reported fourth-quarter and full-year fiscal 2017 figures. Earnings and revenues for the quarter as well as the year beat estimates.

Tesla, Inc.’s (NASDAQ: TSLA Free Report ) loss in first quarter was significantly wider than expected while revenues beat estimates. Meanwhile, Penske Automotive Group, Inc.’s (NYSE: PAG Free Report ) earnings for the first quarter came in line with the Zacks Consensus Estimate. Meanwhile, revenues beat.

Recap of the Week’s Most Important Stories

1. Ford posted adjusted earnings per share of 39 cents in the first quarter of 2017, 29 cents lower (excluding special items) than the year ago quarter. The company recorded revenues of $36.48 billion, $1.3 billion higher than a year ago. Both figures surpassed the Zacks Consensus Estimate.

Ford expects 2017 pre-tax profit to be about $9 billion, lower than $10.4 billion in 2016. In 2017, margin is expected to be lower year over year in North America and performance in Europe and Asia-Pacific are anticipated to be weaker. However, South America as well as the Middle East and Africa are likely to perform better. Ford Credit’s profits in 2017 are anticipted to be about $1.5 billion, lower than the 2016 level of $1.9 billion. (Read More: Ford Earnings & Revenues Beat in Q1, Guidance Still Soft )

Ford carries a Zacks Rank #3 (Hold).

2. Tesla’s adjusted loss was of $1.97 per share in the first quarter of 2017 compared with an adjusted loss of $1.24 in the year-ago quarter. Moreover, the loss was wider than the Zacks Consensus Estimate of a loss of 67 cents. However, revenues more than doubled year over year to $2,696.3 million from $1,147 million recorded in first-quarter 2016. The figure also surpassed the Zacks Consensus Estimate of $2,561 million.

Tesla is set to begin Model 3 production in Jul 2017. The company aims to at least double its Supercharger locations globally in 2017 to over 10,000. To supplement the Superchargers, Tesla also aims to increase the number of Destination Charging connectors globally to 15,000 in 2017. (Read More: Tesla Q1 Loss Wider, Focus on Infrastructure Growth )

Tesla carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

3. General Motors posted record adjusted earnings of $1.70 per share in the first quarter of 2017, up 34.9% year over year. Revenues in the reported quarter were a first-quarter record of $41.2 billion, 10.6% higher than $37.3 billion in the year-ago quarter. Both figures also surpassed the Zacks Consensus Estimate.

General Motors continues to expect 2017 adjusted earnings per share in the range of $6.00–$6.50 compared with the 2016 figure of $6.12. The automaker also expects adjusted EBIT and adjusted EBIT margin to remain stable or improve, while revenues are projected to rise from 2016. (Read More: General Motors Q1 Earnings & Revenues Top, View Same )

General Motors also carries a Zacks Rank #3.

4. Honda reported consolidated income of ¥95.9 billion ($841.2 million) or ¥53.24 per share (47 cents per ADR) in the fourth quarter (ended Mar 31, 2017) of fiscal 2017. Consolidated net sales and other operating revenues rose 2.9% year over year to ¥3.76 trillion ($32.98 billion). Both figures surpassed the Zacks Consensus Estimate.

Honda’s consolidated income stood at ¥616.5 billion ($5.71 billion) or ¥342.10 per share ($3.17 cents per ADR) in fiscal 2017. Consolidated net sales and other operating revenues fell 4.1% year over year to ¥14 trillion ($129.6 billion). Both figures also surpassed the Zacks Consensus Estimate.

For fiscal 2018, Honda expects revenues to improve 1.4% to ¥14.2 trillion ($135.24 billion). Operating income is likely to decline 16.1% to ¥705 billion ($6.71 billion). Net income is projected to decline 14% to ¥530 billion ($5.05 billion) or ¥294.07 ($2.83) per share, down 48% year over year. (Read More: Honda Q4 Earnings Beat Estimates, FY18 Guidance Soft )

Honda carries a Zacks Rank #4 (Sell).

5. Penske Automotive recorded earnings of 97 cents per share in the first quarter of 2017, at par with the Zacks Consensus Estimate. Revenues rose 5.3% to $5.1 billion, surpassing the Zacks Consensus Estimate. Excluding foreign exchange, revenues increased 11.3%, driven by the 11.6% rise in total retail automotive sales to 124,472 units. The increase in automotive sales was driven by the strength in the company's U.K. operations and acquisitions. (Read More: Penske Automotive Q1 Earnings in Line, Revenues Beat )

Penske Automotive carries a Zacks Rank #3.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on F - FREE

Get the full Report on GM - FREE

Get the full Report on HMC - FREE

Get the full Report on TSLA - FREE

Get the full Report on PAG - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Ford Motor Company (F) - free report >>

General Motors Company (GM) - free report >>

Honda Motor Company, Ltd. (HMC) - free report >>


More from Zacks Press Releases

You May Like