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Global automobile sector behemoths, General Motors (GM - Free Report) , Ford Motors (F - Free Report) , Honda Motor Corporation (HMC - Free Report) and Toyota Motors (TM - Free Report) released their quarterly earnings.


General Motors


Shares of General Motors Company were down 0.70% at market close on July 25, 2017, due to the revenue miss. However, it beat the Zacks Consensus Estimate on earnings.


Earnings Discussion


General Motors reported non-GAAP earnings per share (EPS) of $1.89 for the second quarter of 2017, up 1.6% year over year and ahead of the Zacks Consensus Estimate of $1.72. However, revenues of $36.984 billion failed to beat the consensus mark of $40.247 billion. The company reported a 12.7% year-over -year decrease in second-quarter 2017 revenues.


Revenue Performance


GM North America automotive revenues decreased to $28.437 billion from $30.222 billion in the year-ago quarter.


GM International Operations automotive revenues decreased to $3.215 billion from $3.342 billion in the year-ago quarter.


GM South America automotive revenues increased to $2.297 billion from $1.639 billion in the year-ago quarter.


Corporate automotive revenues increased to $52 million from $43 million in the year-ago quarter.


GM Financial Company revenues increased to $2.990 billion from $2.138 billion in the year-ago quarter.


Total unit sales decreased to 2.343 million units from 2.390 million in the year-ago quarter.


Ford


Shares of Ford Motors were down 1.9% at market close on July 25, 2017, due to the revenue miss. However, it beat the Zacks Consensus Estimate on earnings.


Earnings Discussion


Ford reported non-GAAP earnings per share of $0.56, increasing 7.7% year over year. Moreover, it beat the Zacks Consensus Estimate of $0.44 for second-quarter 2017. However, automotive revenues of $37.113 billion failed to beat the consensus mark of $37.945 billion. The company reported a 0.5% increase in quarterly revenues year over year.


Revenue Performance


North America automotive revenues increased to $24.5 billion from $23.8 billion in the year-ago quarter.


South America automotive revenues increased to $1.5 billion from $1.3 billion in the year-ago quarter.


Europe automotive revenues decreased to $7.1 billion from $8.1 billion in the year-ago quarter.


Middle East & Africa automotive revenues decreased to $0.6 billion from $1 billion in the year-ago quarter.


Asia Pacific automotive revenues decreased to $3.4 billion from $4 billion in the year-ago quarter.


Financial Services revenues increased to $2.738 billion from $2.553 billion in the year-ago quarter.


Honda Motor Corporation


Shares of Honda Motor were up 2.2% at market close on August 1, 2017, due to better-than-expected results. It beat the Zacks Consensus Estimate on both earnings and revenue.


Earnings Discussion


Honda reported non-GAAP earnings per share of $1.04, up 10.63 year over year. Moreover, it beat the Zacks Consensus Estimate of $0.83 for the quarter. Consolidated sales revenue of $33.429 billion also beat the consensus mark of $31.297 billion. The company reported a 0.9% decrease in quarterly revenues year over year.


Revenue Performance


Motorcycle Business revenues increased to $4.58 billion from $4 billion in the year-ago quarter.


Automobile Business revenues increased to $23.33 billion from $23.13 billion in the year-ago quarter.


Financial Service Business revenues increased to $4.83 billion from $4.3 billion in the year-ago quarter.


Power Product and Other Business revenues remained flat at $0.70 billion.


Total Honda Group unit sales increased to 7.297 million units from 7.053 million units in the year-ago quarter.


Toyota Motor Corporation


Shares of Toyota Motor were up 2.2% at market close on August 1, 2017, due to better-than-expected results.


Earnings Discussion


Toyota reported net income of $5.52 billion compared with $5.11 billion a year ago. Sales revenue of $63.491 billion also beat the consensus mark of $60.891 billion. The company reported a 4.05% increase in quarterly revenues year over year.


Revenue Performance


Automotive revenues increased to $57.37 billion from $55.82 billion in the year-ago quarter.


Financial Service Business revenues increased to $4.53 billion from $4.06 billion in the year-ago quarter.


Other Business revenues increased to $3.04 billion from $2.3 billion in the year-ago quarter.


Total Toyota Group unit sales increased to 2.215 million units from 2.172 million units in the year-ago quarter.


In the current scenario, we believe it is prudent to discuss the following ETFs that have a relatively high exposure to the companies discussed.


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 $16.81 million and charges a fee of 70 basis points a year. It has an 8.18% allocation to Toyota, 7.95% to Honda, 7.93% to General Motors and 7.61% to Ford (as of August 2, 2017). The fund has returned 12.47% in the last one year and 8.19% year to date (as of August 3, 2017) (read: 3 ETFs & Stocks to Buy Post June Retail Sales).


WBI Power Factor High Dividend ETF (WBIY - Free Report)


This fund focuses on providing exposure to the U.S. automotive sector. It has AUM of $36.5 million and charges a fee of 67 basis points a year. It has 4.87% allocation to General Motors and 4.79% to Ford (as of August 4, 2017). The fund has lost 2.96% year to date and 4.32% in the last one year (as of August 3, 2017).


BLDRS Asia 50 ADR Index Fund (ADRA - Free Report)


This fund focuses on providing exposure to the Asian automotive sector. It has AUM of $22.8 million and charges a fee of 30 basis points a year. It has 10% allocation to Toyota and 3.19% allocation to Honda (as of August 2, 2017). The fund has returned 18.63% year to date and 19.07% in the last one year (as of August 3, 2017).


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