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

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

Honda Motor Company, Ltd. (NYSE:HMC) 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) loss in first quarter was significantly wider than expected while revenues beat estimates. Meanwhile, Penske Automotive Group, Inc.’s (NYSE:PAG) 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.

Performance

Auto stocks recorded a weak performance over the last week. Ford lost the most among the stocks listed below, while Tesla was the sole gainer.

In the last six months, Tesla was the biggest gainer, while AutoZone, Inc. (NYSE:AZO) and Ford were the worst performers.

What’s Next in the Auto Space?

Toyota is scheduled to release earnings in the coming week.

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