Analysts’ Views on Auto Stocks after Their 2Q17 Results
According to the recent data compiled by Thomson Reuters, 24% of the 25 analysts covering Ford (F) stock gave it “buy” recommendations.
As of August 16, 2017, General Motors’ forward EV-to-EBITDA multiple was 5.9x. General Motors’ multiple was much lower than Ford’s multiple at 13.5x.
In 2Q17, General Motors’ (GM) adjusted EBIT (earnings before interest and taxes) stood at 3.7 billion. The company’s EBIT margin was 10.0% for the quarter.
In 2Q17, General Motors’ sales volume in China rose 1.6% to ~852,000 units due to higher demand for Baojun and Cadillac brand vehicles.
In 2Q17, Fiat Chrysler’s (FCAU) shipments in the European market rose ~8% to 395,000 vehicle units from 367,000 units in the same quarter the previous year.
Ford reported a 3% YoY increase in its revenues to $24.5 billion from the North America region. However, Ford’s sales in the region fell ~1%.
In 2Q17, General Motors’ revenues stood at $37.0 billion, which reflects a decrease of 1.1% compared to $37.4 billion in 2Q16.
During the 2Q17 earnings season, auto stocks (IYK) remained highly volatile with a mixed bias. As of August 17, 2017, Ford has fallen ~4.9% in 3Q17.
As of August 15, 2017, Advance Auto Parts stock was trading on a bearish note at $87.08.
As of August 15, 2017, Advance Auto Parts’ forward EV-to-EBITDA multiple was 6.6x.
According to the latest data compiled by Thomson Reuters, 56% of analysts covering Advance Auto Parts (AAP) gave it “buy” recommendations.
In 2Q17, AAP’s gross profit stood at $993 million, about 1.7% lower than the $1.0 billion it posted in the second quarter of the previous year.
Advance Auto Parts’ (AAP) 2Q17 results have fueled investors’ worries about possible near-term weakness in the auto parts retail industry.
In 2015 and 2016, US automakers (FXD) such as Ford (F) and General Motors (GM) benefited from higher US truck sales.
Advance Auto Parts (AAP), one of the largest US auto part retailers, released its 2Q17 earnings on August 15, 2017.
Last week, Tesla stock violated prior resistance levels of $347.00, which should act as an immediate support level going forward.
Last week, Fiat Chrysler stock (FCAU) turned negative and fell 3.8% from the previous week’s closing price.
In the week ended August 11, Ford Motor Company (F) stock settled at $10.77, registering a 1.6% fall for the week.
Last week, General Motors’ (GM) stock settled at $34.93 with 1.0% losses from the previous week’s closing price.
In this series, we’ll look at the possible reasons for mainstream automakers’ negative performance in the second week of August 2017.