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Auto Stocks' Earnings Queued for Oct 31: CMI, OSK, WNC

This is the beginning of another busy week of third-quarter 2017 earnings for the auto sector. Some important companies which have already reported results are General Motors Company GM, Ford Motor Company F, Genuine Parts Company GPC and The Goodyear Tire & Rubber Company GT. While General Motors, Ford and Goodyear Tire & Rubber Company came up with an earnings beat in third-quarter 2017, Genuine Parts Company reported lower-than-expected earnings.

That said, three auto companies — Cummins Inc. CMI, Oshkosh Corporation OSK and Wabash National Corporation WNC — are expected to come up with their financial results on Oct 31. While both Cummins and Wabash National Corporation will come up with third-quarter results, Oshkosh Corporation will announce fourth-quarter 2017 results.

Per the latest Earnings Trends, as of Oct 25, 164 companies from the S&P 500 category have already announced their results. These companies registered earnings and revenues beat ratios of 72% and 73.1%, respectively. As of that date, 40% companies from the Auto sector have already reported earnings for the quarter ended Sep 30, 2017.

However, third-quarter 2017 earnings and revenue growth for auto companies are expected to be in the negative territory. Auto stocks are expected to register a year-over-year decline of 9.8% and 8% in earnings and revenues, respectively. However, the S&P 500 companies are expected to register 3.6% and 5% year-over-year growth in earnings and revenues, respectively, during the quarter.

The auto sector is going through a transition phase. Automakers across the globe are making huge investments in order to get ready for an electric and green future. Moreover, recall issues and lawsuits are still plaguing a few automakers.

Let’s take a look at the three auto companies scheduled to announce their results tomorrow.

We relied on the Zacks methodology, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of an earnings beat this quarter.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Per our proprietary methodology, Earnings ESP shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of a Zacks Rank and ESP, chances of a positive earnings surprise are as high as 70%.

 

Columbus, IN-based Cummins is engaged in design, manufacturing, designing, distribution and services of diesel and natural gas engines, and engine-related component products worldwide. Our model indicates that the company is likely to deliver a positive surprise as it has an Earnings ESP of +0.63% and a Zacks Rank #2.

For 2017, Cummins has bullish outlook on revenues from different segments. The company projects revenues to grow 9-11%, while the prior guidance was 4-6%. Net sales from the Components segment came in at $1.45 in second-quarter 2017. The Zacks Consensus Estimate for net sales from this segment in third-quarter 2017 is $1.39 billion.

Net sales from the Power Generation segment came in at $570 million in second-quarter 2017. The Zacks Consensus Estimate for net sales from this segment in third-quarter 2017 is $962 million (Read more: Cummins to Report Q3 Earnings: Is a Beat in the Cards?).

Cummins Inc. Price and EPS Surprise

Cummins Inc. Price and EPS Surprise | Cummins Inc. Quote

Oshkosh, WI-based Oshkosh Corporation is engaged in manufacturing, designing and marketing of specialty vehicles, and vehicle bodies. Our model does not conclusively predict that the company will deliver a positive surprise as it currently has an Earnings ESP of +0.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lafayette, IN-based Wabash National is a leading manufacturer of semi trailers in North America. Our model does not conclusively predict that the company will deliver a positive surprise as it currently has an Earnings ESP of +0.00% and a Zacks Rank #2.

In second-quarter 2017, Wabash National’s net sales from the Commercial Trailer Products segment came in at $348 million. For third-quarter 2017, the Zacks Consensus Estimate for net sales from the Commercial Trailer Products segment is pegged at $368 million. In second-quarter 2017, net sales from Diversified Products segment came in at $91 million. For third-quarter 2017, the Zacks Consensus Estimate for net sales from Diversified Products segment is also pegged at $91 million.

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Ford Motor Company (F): Free Stock Analysis Report
 
General Motors Company (GM): Free Stock Analysis Report
 
Oshkosh Corporation (OSK): Free Stock Analysis Report
 
Wabash National Corporation (WNC): Free Stock Analysis Report
 
Genuine Parts Company (GPC): Free Stock Analysis Report
 
Cummins Inc. (CMI): Free Stock Analysis Report
 
The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report
 
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