Markets
BWA

Auto Stocks' Q2 Earnings on Jul 28: F, HOG, LEA, BWA, CPS

As the busiest week of the Q2 earnings season crosses the halfway mark, we note that the auto sector has been performing well. As of Jul 22, nearly 27.3% of the sector's companies had reported results. These companies recorded 30.4% year-over-year growth in earnings and 7.8% in revenues, per our Earnings Preview report . In comparison, total S&P 500 companies that had reported through Jul 22 posted a 1.1% decline in earnings and a 2.6% rise in revenues.

By the end of Q2, auto sector earnings and revenue growth is projected to be around 18.4% and 2.1%, respectively. Meanwhile, total S&P 500 earnings and revenues are expected to decline 3.4% and 0.5% year over year, respectively.

Revenues of auto companies are being driven by strong sales in major markets like the U.S., Europe and China, in the first half of 2016. Meanwhile, the bottom line is benefiting from an increase in the sales of higher margin vehicle segments, such as SUVs and light trucks, due to low fuel prices. Nonetheless, the pressure to maintain the attractive incentives and deals may strain the margins for automakers. Sluggishness in some markets and expenses related to safety recalls are other hurdles. The negative impact of foreign currency translation also remains a headwind for the auto sector.

Among the many stocks lined up to report this week, let's see what awaits these five auto stocks slated to release their second-quarter 2016 results on Jul 28.

Ford Motor Co.F carries a Zacks Rank #4 (Sell). Earnings ESP for the company is currently pegged at +3.33% as the Most Accurate estimate of 62 cents stands above the Zacks Consensus Estimate of 60 cents. We note that the company delivered positive earnings surprises in three of the last four quarters, with an average beat of 27.70% (read more: What's in the Cards for Ford this Earnings Season? )

FORD MOTOR CO Price and EPS Surprise

FORD MOTOR CO Price and EPS Surprise | FORD MOTOR CO Quote

Harley-Davidson, Inc.HOG has an Earnings ESP of -0.65% and a Zacks Rank #3 (Hold). The Most Accurate estimate of $1.52 stands below the Zacks Consensus Estimate of $1.53. The company managed to beat earnings in three of the last four quarters with a positive average surprise of 3.53% (read more: Harley-Davidson: Will its Earnings Disappoint in Q2? )

HARLEY-DAVIDSON Price and EPS Surprise

HARLEY-DAVIDSON Price and EPS Surprise | HARLEY-DAVIDSON Quote

Lear Corp.LEA currently carries a Zacks Rank #4. The company has an Earnings ESP of -3.88% because the Most Accurate estimate of $3.22 stands below the Zacks Consensus Estimate of $3.35. Lear Corp. surpassed earnings estimates in each of the last four quarters. This resulted in a positive average surprise of 13.05%.

LEAR CORPORATN Price and EPS Surprise

LEAR CORPORATN Price and EPS Surprise | LEAR CORPORATN Quote

BorgWarner Inc.BWA has an Earnings ESP of -1.22% and a Zacks Rank #4. The Most Accurate estimate is 81 cents, while the Zacks Consensus Estimate is pegged at 82 cents. BorgWarner beat earnings estimates in three of the trailing four quarters. However, the wide earnings miss in the second quarter of 2015 resulted in a negative average surprise of 0.35% (read more: Will BorgWarner's Q2 Earnings Disappoint Investors? )

BORG WARNER INC Price and EPS Surprise

BORG WARNER INC Price and EPS Surprise | BORG WARNER INC Quote

Cooper-Standard Holdings Inc.CPS carries a Zacks Rank #4. The Earnings ESP for the company is currently pegged at +0.86% as the Most Accurate estimate of $2.35 stands above the Zacks Consensus Estimate of $2.33. We note that the company delivered a positive earnings surprise in each of the last four quarters. This resulted in a positive average surprise of 52.48%.

COOPER-STANDARD Price and EPS Surprise

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

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

FORD MOTOR CO (F): Free Stock Analysis Report

BORG WARNER INC (BWA): Free Stock Analysis Report

LEAR CORPORATN (LEA): Free Stock Analysis Report

HARLEY-DAVIDSON (HOG): Free Stock Analysis Report

COOPER-STANDARD (CPS): 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

BWA F HOG LEA CPS

Other Topics

Earnings Stocks