Markets
AAP

Auto Stock Roundup: US Sales Rise; Tesla, Honda Miss on Earnings; Toyota Beats

Earnings and sales data ruled the headlines in the auto sector last week. U.S. light-vehicle sales came in at 1.46 million units in Oct 2015, while sales on a seasonally adjusted annualized rate ("SAAR") basis surged to 18.23 million units, the highest since Jul 2005.

Meanwhile, Tesla Motors, Inc. TSLA , Honda Motor Co., Ltd. HMC , Toyota Motor Corporation TM and Penske Automotive Group, Inc. PAG reported their financial results for the quarter ended Sep 30, 2015. Toyota was the only company among these to beat earnings estimates, while Honda was the only one to miss revenue estimates.

(Read last to last week's recap here: Auto Stock Roundup for Oct 29, 2015 )

Recap of the Week's Most Important Stories

1. U.S. light-vehicle sales increased 13.6% year over year to 1.46 million units in Oct 2015. Sales on a SAAR basis surged to 18.23 million units in Oct 2015 from 16.59 million units in Oct 2014 and 18.17 million units in Sep 2015. The sales volume was driven by low gas prices, high demand for light trucks, attractive deals and the easy availability of credit with lower interest rates.

2. Tesla reported adjusted loss (excluding one-time items other than stock-based compensation expense) of $1.01 per share in the third quarter of 2015, much wider than adjusted loss of 29 cents incurred in the year-ago quarter. Moreover, the loss was significantly wider than the Zacks Consensus Estimate of a loss of 71 cents per share.

Adjusted revenues improved 33% year over year to $1.24 billion in the reported quarter and steered past the Zacks Consensus Estimate of $1.21 billion. The company anticipates 17,000-19,000 vehicle deliveries in the fourth quarter. For 2015, Tesla lowered the higher end of its vehicle delivery guidance range to 50,000-52,000 units from 50,000-55,000 vehicles guided earlier (read more: Tesla Q3 Loss Wider than Expected, Trims Delivery Target ).

3. Honda reported a 6.9% increase in earnings to ¥127.7 billion ($1.07 billion) or ¥70.88 (59 cents) per share in the second quarter (ended Sep 30, 2015) of fiscal 2016. However, earnings per share missed the Zacks Consensus Estimate of 63 cents. Consolidated net sales and other operating revenues went up 15.6% year over year to ¥3.62 trillion ($30.19 billion) but missed the Zacks Consensus Estimate of $30.22 billion.

The year-over-year increase can be attributed to higher revenues from all business segments, as well as favorable foreign currency translation effects. For fiscal 2016, Honda increased the revenue guidance to ¥14.6 trillion from ¥14.5 trillion projected earlier.

4. Toyota recorded earnings of ¥192.51 per share ($3.16 per ADR) in second-quarter fiscal 2016 (ended Sep 30, 2015), compared with ¥170.54 per share ($3.28 per ADR) earned in second-quarter fiscal 2015. Earnings per ADR surpassed the Zacks Consensus Estimate of $3.09. Consolidated revenues increased 8.4% year over year to ¥7.1 trillion ($58.2 billion) and outpaced the Zacks Consensus Estimate of $57.81 billion.

Toyota reduced its consolidated revenue guidance to ¥27.5 trillion ($233.1 billion) from ¥27.8 trillion ($237.6 billion) for fiscal 2016. The revenue guidance indicates a 1% improvement over fiscal 2015. Consolidated vehicle sales for fiscal 2016 are anticipated at about 8.75 million units, down from the prior estimate of 8.95 million units, as well as from nearly 8.97 million vehicles sold in fiscal 2015.

5. Penske Automotive's third-quarter 2015 earnings per share improved 12.9% to 96 cents from 85 cents a year ago. However, earnings missed the Zacks Consensus Estimate of $1.01. Revenues grew 12.8% year over year to $4.96 billion, marginally surpassing the Zacks Consensus Estimate of $4.92 billion (read more: Penske Automotive's Q3 Earnings Miss Estimates, Rise Y/Y ).

Performance

Auto stocks recorded mixed results over the last week. Tesla recorded the maximum gain as the stock surged 11.2% following its earnings release. Although the company reported wider-than-expected loss, the better-than-expected delivery guidance for the fourth quarter pulled up the stock. Meanwhile, Honda recorded the maximum loss among the stocks listed below.

Advance Auto Parts Inc. AAP was yet again the biggest gainer over the last six-month period, while Harley-Davidson, Inc. HOG remained the worst performer.

Company Last 1-Week Period Last 6 Months
GM +0.6% +1.2%
F -2.1% -5.7%
TSLA +8.8% -0.6%
TM -2.2% -10.2%
HMC -5.1% -4.9%
HOG +2.4% -14.5%
AAP +2.6% +38.4%
AZO +1.4% +17.2%

What's Next in the Auto Space?

Most automakers will report their China and Europe sales data for October in the coming weeks.

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 >>

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

PENSKE AUTO GRP (PAG): Free Stock Analysis Report

HONDA MOTOR (HMC): Free Stock Analysis Report

TOYOTA MOTOR CP (TM): Free Stock Analysis Report

HARLEY-DAVIDSON (HOG): Free Stock Analysis Report

ADVANCE AUTO PT (AAP): Free Stock Analysis Report

TESLA MOTORS (TSLA): 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

AAP HOG HMC TM PAG

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More