Auto Stocks' Q1 Earnings Roster for Apr 24: HOG and PCAR

The Auto sector has been seeing a slew of first-quarter 2018 earnings releases of late. Many of the bigwigs are slated to release results for the quarter ending Mar 31, 2018, by the end of this week. On Apr 19, Genuine Parts Company GPC and WABCO Holdings Inc. WBC reported first-quarter earnings. WABCO reported earnings beat for the quarter, while Genuine Parts missed the estimate.

Per the latest Earnings Preview, 87 companies under the S&P 500 category have reported results. These companies’ beat ratios were 82.8% and 67.8% for earnings and revenues, respectively.

For first-quarter 2018, earnings for auto companies are expected to decline 9.6% on a year-over-year basis and revenues are likely to fall 3.4%. However, the S&P 500 companies are likely to see 18.3% and 7.7% year-over-year growth in earnings and revenues, respectively, in the quarter.

In March, the automakers made a comeback after seeing declining U.S. sales in February 2018. An improved economy, product launches and customer discounts have helped auto companies witness a year-over-year rise in new vehicle sales. This uptick has encouraged automakers to introduce improved SUV and pick-up truck models under various brands, each catering to specific customer requirements. Further, a number of major auto companies have announced newer models which are expected to hit the showrooms in 2019.

Meanwhile, in the world’s largest automotive market China, auto sales rose 4.7% year over year to 2.66 million units in March after an 11% drop in February 2018. Per the China Association of Automobile Manufacturers, first-quarter vehicles sales rose 2.8% on a year-over-year basis to around 7.2 million units.

Now, let’s take a closer look at two big names in the auto industry — Harley-Davidson, Inc. HOG and PACCAR Inc. PCAR — which are set to announce results on Apr 24.

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

Per our proprietary methodology, Earnings ESP shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Our research shows that with the ideal combination of two key ingredients — Zacks Rank and ESP — chances of a positive surprise are as high as 70% for the stocks lined up for an earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Milwaukee, WI-based Harley-Davidson manufactures and sells custom, cruiser and touring motorcycles. At present, the company is making investments to develop and launch electric motorcycles by 2019. Our proven model does not conclusively show an earnings beat for Harley-Davidson. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

Last quarter, the company outpaced the consensus estimate. Additionally, in the last four quarters, the company surpassed estimates in three while meeting in one. Further, it has a long-term earnings growth rate of 8%. (Read more: What's in Offing for Harley-Davidson in Q1 Earnings?)

Harley-Davidson, Inc. Price and EPS Surprise

 

Harley-Davidson, Inc. Price and EPS Surprise | Harley-Davidson, Inc. Quote

Headquartered in Bellevue, WA, PACCAR engages in design, manufacture and customer support of premium light, medium and heavy-duty trucks. Further, the company manufactures advanced diesel engines and distributes truck parts. Last quarter, the company pulled off a positive surprise. Further, in the last four quarters, it exceeded estimates thrice while meeting in one that led to an average beat of 4.3%.

The company has a long-term growth rate of 9.75%. Per our model, it seems that PACCAR is likely to beat earnings this quarter as it has an Earnings ESP of +1.23% and a Zacks Rank of 2.

PACCAR Inc. Price and EPS Surprise

 

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

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PACCAR Inc. (PCAR) : Free Stock Analysis Report
 
Wabco Holdings Inc. (WBC) : Free Stock Analysis Report
 
Genuine Parts Company (GPC) : Free Stock Analysis Report
 
Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report
 
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