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Auto Industry Earnings This Week: RACE, FCAU, GM

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Auto industry majors Ferrari (RACE), Fiat Chrysler Automobiles (FCAU), and General Motors (GM) are all set to report their second-quarter earnings this week. Fiat will post earnings on July 31, General Motors on August 1, and Ferrari on August 2. These are following earnings releases of other auto industry companies like Tesla (TSLA) and Ford Motor Company (F) in the past week. Both stocks slumped after their earnings release.

Analysts expect Ferrari’s earnings to rise by 13% YoY while they expect Fiat and General Motors earnings to fall 5% YoY and 21% YoY.

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Auto industry companies’ pre-earnings

General Motors (GM) stock has risen the most by 6% so far in July. Ferrari (RACE) also has surged by 2% in the same period. However, another auto industry stock Fiat (FCAU) has fallen by 1%. Further, Tesla (TSLA) and Ford Motor (F) stocks have fallen by 4% and 6%, respectively. Read Ferrari (RACE) Is a Great Momentum Stock: Should You Buy, to learn about the stock.

Auto industry’s strong player Ferrari’s estimate

Wall Street analysts expect Ferrari’s (RACE) EPS to rise by 13% YoY to 0.95 euros in the second quarter of 2019. However, it will be almost the same as its EPS in the first quarter of 2019. Analysts expect Ferrari’s revenue to be 958 million euros in the second quarter, around 6% YoY higher. Ferrari posted a strong set of numbers in the first quarter. To learn more, read Ferrari Is Rallying towards All-Time High after Q1 Earnings.

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Ferrari’s financials have been growing strong in the past few years led by new product launches. Ferrari’s revenues have risen by a CAGR (compounded annual growth rate) of 8% while its adjusted EBITDA has increased by a 12% CAGR in the past five years. The company expects its adjusted EBITDA to almost double over the next five years to more than 1.2 billion euros in 2022. Ferrari expects its price mix and volumes to drive its earnings growth. The company plans to incur capex of 3.6 billion euros cumulatively over the next five years to achieve its targets.

Auto industry major: Fiat’s estimate

Wall Street analysts expect Fiat Chrysler Automobiles’ (FCAU) EPS to fall by 5% YoY to 0.59 euros in the second quarter of 2019. However, Fiat’s estimated EPS is 51% higher than its EPS in the first quarter of 2019. Analysts expect Fiat’s revenue to be 27.4 billion euros in the second quarter, around 5% YoY lower. The company posted weak numbers in the first quarter. To learn more, read Why Did Fiat Chrysler’s Revenues Fall in Q1?

General Motor’s outlook

Wall Street analysts expect General Motors’ (GM) EPS to fall by 21% YoY to $1.4 in the second quarter of 2019. However, General Motor’s estimated EPS is 2% higher than its EPS in the first quarter of 2019. Analysts expect the company’s revenue to be $36.1 billion in the second quarter, around 2% YoY lower. The company posted lower earnings in the first quarter. To learn more, read GM Beats Q1 Earnings Estimates, Missed on Revenues.

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