The first-quarter earnings season is nearing its end with very few auto companies left to report. Over the last week, Toyota Motor Corporation (NYSE:TM) was the only major company to report earnings. The Japanese automaker reported weak net income and revenues for the quarter ended Mar 31, 2016. It also issued weak guidance for fiscal 2017.
Meanwhile, Ford Motor Co. (NYSE:F) announced a new investment, Tata Motors Limited (NYSE:TM) reported global wholesales for April and Penske Automotive Group, Inc. (NYSE:PAG) announced a new senior notes issue. Also, Honda Motor Co., Ltd. (NYSE:HMC) started the production of the 2017 Ridgeline pickup.
(Read the previous roundup here: Auto Stock Roundup for May 5, 2016)
Recap of the Week’s Most Important Stories
1. Toyota posted consolidated net income of ¥426.6 billion ($3.71 billion) in fourth-quarter fiscal 2016 (ended Mar 31, 2016), lower than ¥446.4 billion ($3.75 billion) reported in the year-ago quarter. Consolidated revenues decreased 2.1% year over year to ¥6.97 trillion ($60.6 billion) and missed the Zacks Consensus Estimate of $63.1 billion.
Toyota revealed its consolidated revenue guidance of ¥26.5 trillion ($252.4 billion) for fiscal 2017. The revenue guidance reflects a 6.7% decline from fiscal 2016. Operating income for the full fiscal is guided at ¥1.7 trillion ($16.2 billion). The guidance reflects a 40.4% year-over-year decrease. Net earnings are expected at around ¥1.5 trillion ($14.3 billion), reflecting a 35.1% decline over fiscal 2016 (read more: Toyota Misses FY16 Earnings, Posts Weak FY17 View).
2. Ford announced a $182.2 million investment in the cloud-based software platform company Pivotal. The investment is aimed at improving Ford’s software development capabilities and expediting innovations for customers.
3. Tata Motors reported that its global wholesales, inclusive of the Jaguar Land Rover, increased 5% year over year to 81,333 vehicles in Apr 2016. Global wholesales of all Tata Motors’ commercial vehicles and the Tata Daewoo range were 29,584 vehicles, 11% higher than the figure recorded in Apr 2015. Global wholesales of all passenger vehicles in the month of April inched up 1% to 51,749 units. Jaguar Land Rover recorded global sales of 40,933 vehicles in Apr 2016.
4. Honda started mass production of the new 2017 Honda Ridgeline pickup truck at Honda Manufacturing of Alabama (HMA). The truck will be exclusively manufactured at HMA and will soon go on sale in the U.S.
5. Penske Automotive announced that it will issue a $500 million aggregate principal amount of fixed rate senior subordinated notes due 2026. The company expects to close the issue on May 25, 2016. The proceeds will be used to repay amounts outstanding under the company's U.S. credit agreement and floor plan debt as well as for general working capital purposes.
Performance
Auto stocks saw mixed fortunes over the last week. Honda led the gainers’ list, while Tesla Motors, Inc. (NASDAQ:TSLA) lost the maximum. Meanwhile, Toyota emerged as the biggest loser over the last six months.
Company | Last 1-Week Period | Last 6 Months |
GM | +1.6% | -11.4% |
F | +0.1% | -5.1% |
TSLA | -6.1% | -1.9% |
TM | -2.2% | -19.1% |
HMC | +3.7% | -14.8% |
HOG | -2.4% | -5.5% |
AAP | -4.9% | -10.0% |
AZO | -2.1% | -0.8% |
What’s Next in the Auto Space?
Honda is set to report fourth-quarter and fiscal 2016 (ended Mar 31, 2016) results on May 13. Advance Auto Parts Inc. (NYSE:AAP) will report financial results for the first quarter of 2016 on May 19.
A few automakers will also report their Europe auto sales for April.
PENSKE AUTO GRP (PAG): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
TESLA MOTORS (TSLA): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
TATA MOTORS-ADR (TTM): Free Stock Analysis Report
ADVANCE AUTO PT (AAP): Free Stock Analysis Report
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