Auto Earnings Releases On May 12: NSANY, CAAS, UFAB, WPRT

The Q1 earnings season is nearing the end with about 23% of the S&P 500 members left to report results as of May 6. So far, the auto sector has outperformed the remaining 15 Zacks sectors in terms of earnings. As of May 6, it was the only sector to maintain an earnings beat ratio of 100%, per our Earnings Preview report. Moreover, auto sector companies recorded impressive year-over-year earnings growth of 53.2%. Meanwhile, revenues in this sector witnessed a modest 4.4% improvement, with a beat ratio of 40%.

Revenues of auto companies are being driven by strong sales in important markets like U.S., Europe and China in the first quarter. Meanwhile, the bottom line is benefiting from an increase in the sales of higher margin vehicle segments, such as SUVs and light trucks, due to low fuel prices. However, sluggishness in some emerging markets and expenses related to safety recalls are challenges. The negative impact of foreign currency translation also remains a major headwind.

Among the many stocks lined up to report this week, let’s see what awaits these four auto sector companies scheduled to release their results on May 12.

Nissan Motor Co. Ltd. (OTC:NSANY) will report fourth-quarter and fiscal 2015 (ended Mar 31, 2016) results on May 12. The stock carries a Zacks Rank #2 (Buy) and has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter is pegged at 43 cents. Nissan delivered positive earnings surprises in each of the last four quarters. This resulted in an average beat of 14.28%.

China Automotive Systems Inc. (NASDAQ:CAAS) is set to report first-quarter 2016 results before the opening bell on May 12. The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is 22 cents. China Automotive surpassed earnings in three of the last four quarters, but has a negative average surprise of 1.54%.

Unique Fabricating, Inc. (NYSE:UFAB) will report first-quarter 2016 results before the market opens on May 12. The Zacks Rank #3 (Hold) stock has an Earnings ESP of 0.00%. The Zacks Consensus Estimate stands at 20 cents. The company has delivered a negative average surprise of 1.97% over the last four quarters.

Westport Innovations Inc. (NASDAQ:WPRT) is set to report first-quarter 2016 results after the market closes on May 12. The company has an Earnings ESP of -27.59% and a Zacks Rank #4. The Zacks Consensus Estimate stands at a loss of 29 cents. Westport Innovations missed earnings estimates in 3 of the trailing 4 quarters. This resulted in a negative average surprise of around 38.25% over the last four quarters. (Read more: What Awaits Westport Innovations in Q1 Earnings?)

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