This month, most auto stocks have outperformed the broader market. Amid ongoing US-China trade negotiations, high expectations from the auto industry’s first-quarter earnings season may be keeping auto investors’ optimism alive.
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The auto industry’s Q1 2019 earnings season
In the last couple of weeks, many large banks, including JPMorgan Chase (JPM), Morgan Stanley (MS), and Citigroup (C) have released their first-quarter results. The auto industry’s first-quarter earnings season is set to kick off this week, with Harley-Davidson slated to release its first-quarter earnings on April 23, followed by Tesla (TSLA) on April 24.
The second largest US automaker, Ford (F), is set to announce its first-quarter results on April 25, while its home market peer and the largest US automaker, GM, is scheduled to report on April 30. Italian-American auto giant Fiat Chrysler (FCAU) and Italian luxury carmaker Ferrari (RACE) are set to announce their first-quarter earnings on May 3 and 7, respectively.
What to expect
Among the abovementioned auto companies, analysts expect only Ferrari to report YoY (year-over-year) earnings growth in the first quarter. Whereas they expect Tesla’s quarterly net losses to improve YoY, the company is not expected to report net profitability. Analysts expect GM’s, Ford’s, and Fiat Chrysler’s earnings to fall 22.6%, 38.4%, and 24.6% YoY in the first quarter, respectively.