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Auto Stocks' Earnings Queued Up for Aug 2: TSLA, DLPH & More

It’s yet another busy week for auto stocks this reporting cycle. Two important companies, Honda Motor Co., Ltd. HMC and Standard Motor Products, Inc. SMP, have already announced their results this week.
 
Four important companies expected to come up with their results on Aug 2 are Tesla, Inc. TSLA, Delphi Automotive PLC DLPH, Ferrari N.V. RACE and Oshkosh Corporation OSK.

According to the latest Earnings Outlook, as of Jul 26, 171 companies from the S&P 500 category have already reported their quarterly numbers. These companies, as a whole, delivered earnings and revenues beat ratios of 78.9% and 70.8%, respectively. As of that date, 50% companies from the Auto, Tires and Trucks sector have reported earnings for quarter ended Jun 30, 2017.

So far, auto stocks have reported year-over-year earnings and revenues growth of 1.1% and 5.4%, respectively. In fact, earnings and revenue growth for auto companies are expected to be in the negative territory, this reporting season. Auto stocks are expected to register 0.4% and 4.5% year-over-year decline in earnings and revenues, respectively. However, the S&P 500 companies, as a whole, are expected to record 8.7% and 4.7% year-over-year growth in earnings and revenues, respectively.

Of late, the auto sector has been facing quite a few problems. High level of inventory and frequent recalls are adversely affecting these companies.

Additionally, the U.S. government’s plans of exiting the NAFTA treaty and implementation of tariffs might negatively impact auto stocks.

That said, let’s take a look at the four auto companies scheduled to release their results tomorrow.

We relied on the Zacks methodology, which considers a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP, to predict chances of a beat this quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.


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 rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.

Palo Alto, CA-based Tesla designs, produces and sells electric cars, powertrain components and battery packs. Our model does not conclusively predict that the company is likely to deliver a positive earnings surprise in the second quarter, as it currently has an Earnings ESP of -18.50% and a Zacks Rank #3. (Read more: What's in the Offing for Tesla this Earnings Season?).

Tesla Inc. Price and EPS Surprise

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

Delphi, headquartered in Gillingham, U.K., is one of the leading global manufacturers of vehicle components and a supplier of technology for automotive and commercial vehicles. Our model does not conclusively predict that the company is likely to deliver a positive earnings surprise in the second quarter, as it currently has an Earnings ESP of -0.61% and a Zacks Rank #3. (Read more: What's in Store for Delphi Automotive in Q2 Earnings?).

Maranello, Italy-based Ferrari is engaged in designing, manufacturing and selling sports cars. Our model does not conclusively predict that the company is likely to deliver a positive earnings surprise in the second quarter, as it currently has an Earnings ESP of -6.06% and a Zacks Rank 2. (Read more: What's in Store for Ferrari this Earnings Season?).

Ferrari N.V. Price and Consensus

Ferrari N.V. Price and Consensus | Ferrari N.V. Quote

Oshkosh, WI-based Oshkosh Corporation is a designer, manufacturer and marketer of a wide range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Our model does not conclusively predict that the company is likely to deliver a positive earnings surprise in the third quarter of fiscal 2017, as it currently has an Earnings ESP of -1.50% and a Zacks Rank 2.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Tesla Inc. (TSLA): Free Stock Analysis Report
 
Honda Motor Company, Ltd. (HMC): Free Stock Analysis Report
 
Oshkosh Corporation (OSK): Free Stock Analysis Report
 
Delphi Automotive PLC (DLPH): Free Stock Analysis Report
 
Ferrari N.V. (RACE): Free Stock Analysis Report
 
Standard Motor Products, Inc. (SMP): Free Stock Analysis Report
 
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