Markets
CTB

Auto Q3 Earnings to Watch Early Next Week: CNHI, CTB, CPS

The earnings at the auto sector have been mostly positive this week, despite projections of a decline. Nearly 40% of the sector's companies had posted results as of Oct 26, 2016. These companies recorded a year-over-year improvement of 5.1% in earnings and 6.3% in revenues, per our Earnings Outlook report. In comparison, total S&P 500 companies that had reported till then posted a 3.2% increase in earnings and a 1.9% rise in revenues.

However, the overall projections for the auto sector's Q3 earnings are still weak. By the end of the earnings season, auto sector earnings and revenues are expected to be down 12.4% and 4.7%, respectively. This will place it among the worst performers in the 16 Zacks sectors. In comparison, total S&P 500 earnings are projected to improve 1.4%, with revenues also rising 1.4% year over year.

The fall in U.S. auto sales over the last two months is expected to weigh on the results of many automakers. The pressure to maintain attractive incentives and deals may also strain their margins. Further, expenses related to safety recalls as well as the negative impact of foreign currency translation remain headwinds for the sector. However, there are a few positives as well. Strong sales growth in China and Europe is the primary driving factor for the auto sector in Q3. Moreover, low fuel prices are driving the sales of higher margin vehicle segments, such as SUVs and light trucks.

With all these factors in mind, let's see what awaits these three auto stocks that are slated to release their third-quarter 2016 results early next week.

CNH Industrial N.V.CNHI has an Earnings ESP of -40.00% as the Most Accurate estimate of 3 cents stands below the Zacks Consensus Estimate of 5 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

CNH surpassed earnings estimates in two of the trailing four quarters and missed in the other two. This resulted in an average negative surprise of 25.15% over this period. The company currently holds a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

CNH INDUSTRIAL Price and EPS Surprise

CNH INDUSTRIAL Price and EPS Surprise | CNH INDUSTRIAL Quote

Cooper Tire & Rubber Co.CTB currently has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.01. The company sports a Zacks Rank #1. We note that Cooper Tire delivered positive earnings surprises in each of the trailing four quarters, with an average positive surprise of 22.13%. (Read more: Cooper Tire to Report Q3 Earnings: What to Expect? ).

COOPER TIRE Price and EPS Surprise

COOPER TIRE Price and EPS Surprise | COOPER TIRE Quote

Cooper-Standard Holdings Inc.CPS has an Earnings ESP of +7.30% as the Most Accurate estimate of $2.50 is above the Zacks Consensus Estimate of $2.33. The company posted positive earnings surprises in each of the trailing four quarters, with an average positive surprise of 51.17%. Cooper-Standard currently holds a Zacks Rank #4 (Sell).

COOPER-STANDARD Price and EPS Surprise

COOPER-STANDARD Price and EPS Surprise | COOPER-STANDARD Quote

Confidential: Zacks' Best Investment Ideas

Would you like to see a hand-picked "all-star" selection of investment ideas from the man who heads up Zacks' trading and investing services? Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand. Click for his selected trades right now >>

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

COOPER TIRE (CTB): Free Stock Analysis Report

COOPER-STANDARD (CPS): Free Stock Analysis Report

CNH INDUSTRIAL (CNHI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CTB CNHI CPS

Other Topics

Earnings Stocks

Latest Markets Videos