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ETFs in Focus Post Automobile Earnings

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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 up 5.6% at market close on Feb 6, 2018, as it surpassed the Zacks Consensus Estimate on both earnings and revenues.

Earnings Discussion

General Motors reported non-GAAP earnings per share (EPS) of $1.65 for the fourth quarter of 2017, beating the Zacks Consensus Estimate of $1.34 and increasing from $1.28 in the prior-year quarter. Moreover, revenues of $37.715 billion beat the consensus mark of $33.262 billion. The company reported a 14.1% year-over-year decline in fourth-quarter 2017 revenues.

Revenue Performance

GM North America automotive revenues decreased to $28.751 billion from $31.298 billion in the year-ago quarter.

GM International Operations automotive revenues decreased to $5.694 billion from $6.009 billion in the year-ago quarter.

Corporate automotive revenues remained at $36 million, same as the year-ago quarter.

GM Financial Company revenues increased to $3.252 billion from $2.554 billion in the year-ago quarter.

Total 2017 revenues decreased to $145.588 billion compared with $149.184 billion in 2016.

Total unit sales decreased to 2.593 million units from 2.583 million in the year-ago quarter. 2017 total worldwide unit sales increased to 8.915 million from 8.847 million in the prior year.

Ford

Ford Motors reported its quarterly results. It surpassed the Zacks Consensus Estimate on revenues but missed on earnings.

Earnings Discussion

Ford reported non-GAAP earnings per share of $0.39, increasing from $0.30 a year ago. However, it failed to beat the Zacks Consensus Estimate of $0.42. Moreover, automotive revenues of $41.300 billion surpassed the consensus mark of $37.533 billion. The company reported an increase of 14.7% in quarterly revenues year over year.

Revenue Performance

North America automotive revenues increased to $24.1 billion from $23.1 billion in the year-ago quarter.

South America automotive revenues increased to $1.7 billion from $1.4 billion in the year-ago quarter.

Europe automotive revenues increased to $8.1 billion from $7.2 billion in the year-ago quarter.

Middle East & Africa automotive revenues decreased to $0.8 billion from $0.9 billion in the year-ago quarter.

Asia Pacific automotive revenues increased to $3.7 billion from $3.1 billion in the year-ago quarter.

Ford credit revenues increased to $610 million from $408 million in the year-ago quarter.

Total 2017 revenues increased to $156.8 billion from $151.8 billion in 2016.

Honda Motor Corporation

Shares of Honda Motor were up 2.8% at market close on Feb 2, 2018, due to better-than-expected results. Both earnings and revenues beat the Zacks Consensus Estimate. .

Earnings Discussion

Honda reported non-GAAP earnings per share of $1.11, increasing from $0.80 a year ago. Moreover, it beat the Zacks Consensus Estimate of $0.78. Consolidated sales revenues of $35.060 billion also beat the consensus mark of $33.086 billion. The company reported a 16.7% year-over-year increase in quarterly revenues.

Revenue Performance

Motorcycle Business revenues increased to $4.416 billion from $3.858 billion in the year-ago quarter.

Automobile Business revenues increased to $25.676 billion from $23.820 billion in the year-ago quarter.

Financial Service Business revenues increased to $4.664 billion from $4.181 billion in the year-ago quarter.

Power Product and Other Business revenues increased to $827.274 million from $736.926 million in the year-ago quarter.

Total Honda Group unit sales increased to 7.410 million units from 7.010 million units in the year-ago quarter.

Toyota Motor Corporation

Shares of Toyota Motor were up 5.2% in afterhours trading on Feb 6, 2018, due to better-than-expected results.

Earnings Discussion

Toyota reported diluted earnings per share of $2.78, failing to beat the Zacks Consensus Estimate of $2.84. However, sales revenues of $67.307 billion beat the consensus mark of $65.112 billion. The company reported a 3.6% year-over-year increase in quarterly revenues.

Revenue Performance

Automotive revenues increased to $60.732 billion from $59.353 billion in the year-ago quarter.

Financial Service Business revenues increased to $4.535 billion from $4.366 billion in the year-ago quarter.

Other Business revenues increased to $3.371 billion from $2.532 billion in the year-ago quarter.

Total Toyota Group unit sales increased to 2.289 million units from 2.280 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 $20.8 million and charges a fee of 70 basis points a year. It has an allocation of 8.6% to Toyota, 8.5% to Honda, 7.4% to General Motors and 6.6% to Ford (as of Nov 14, 2017). The fund has returned 23.3% in a year.

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 $42.3 million and charges a fee of 70 basis points a year. It has 5.0% allocation to General Motors and 4.7% to Ford (as of Feb 7, 2017). The fund has returned 9.6% in a year.

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

This fund focuses on providing exposure to the Asian automotive sector. It has AUM of $22.9 million and charges a fee of 30 basis points a year. It has 10.4% allocation to Toyota and 3.6% to Honda (as of Feb 5, 2018). The fund has returned 24.8% in a year.

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