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Auto Q1 Earnings Slated Early Next Week: BRDCY, PLOW, PSIX

The Q1 earnings season is in the final stretch, with less than 25% of the S&P 500 companies yet to report. Among the 16 Zacks sectors, the Auto sector has recorded the best earnings performance so far. As of May 4, auto sector companies recorded an impressive earnings beat ratio of 100% and year-over-year earnings growth of 53.2%, per our Earnings Preview report. Meanwhile, auto sector revenues witnessed modest 4.4% improvement, with a beat ratio of 40%.

Revenues of auto companies are expected to be driven by strong sales in important markets like U.S., Europe and China in the first quarter. Meanwhile, the bottom line will benefit from an increase in the sales of higher margin vehicle segments, such as SUVs and light trucks, due to low fuel prices. However, the negative impact of foreign currency translation remains a major headwind for the auto sector. Sluggishness in many emerging markets and expenses related to safety recalls are other challenges.

Among the many companies lined up to report this week, let’s see what awaits these three auto stocks scheduled to release their results early next week.

Douglas Dynamics, Inc. PLOW is slated to report first-quarter 2016 financial numbers after the market closes on May 9. The company has an http://www.zacks.com/earnings/earnings-surprise-predictions/">Earnings ESP of -66.67% for the first quarter. The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) stock’s earnings is pegged at 3 cents per share. While Douglas Dynamics’ Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.

Douglas Dynamics delivered positive earnings surprises in each of the last four quarters. This resulted in an average beat of 57.20%.

Power Solutions International, Inc. PSIX is set to report first-quarter 2016 results after the closing bell on May 9. The company has an Earnings ESP of -20.51%. Power Solutions International’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

Power Solutions International delivered mixed earnings surprises in the last four quarters. It outperformed the Zacks Consensus Estimate in 1 of the trailing 4 quarters, missed in one and reported in line results in the other two. This resulted in a negative average surprise of around 18.92% over the last four quarters.

Bridgestone Corp. BRDCY is set to release its first-quarter 2016 results on May 11. Carrying a Zacks Rank #3, Bridgestone has an Earnings ESP of 0.00% for the quarter. Though the company’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.

Check back later for our full write-up on the earnings releases of these stocks.

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DOUGLAS DYNAMIC (PLOW): Free Stock Analysis Report
 
BRIDGESTONE ADR (BRDCY): Free Stock Analysis Report
 
POWER SOL INTL (PSIX): Free Stock Analysis Report
 
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