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Auto Stocks' Q3 Earnings Lineup for Nov 14: AAP, PSIX, SORL

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The auto sector has been one of the worst performers this earnings season. Auto companies’ results as of Nov 9, 2016 displayed a year-over-year decline of 8.2% in earnings and 1.1% in revenues, per our latest Earnings Outlook. In comparison, S&P 500 companies that have reported so far posted a 4% increase in earnings on a 2.7% rise in revenues.

The decline in U.S. auto sales in August and September affected the quarterly results of many automakers. The pressure to maintain attractive incentives and deals also strained their margins. Further, expenses related to safety recalls as well as the adverse impact of foreign currency translation remain headwinds for the sector.

Meanwhile, strong sales growth in China and Europe has been 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 third-quarter 2016 results on Nov 14.

Advance Auto Parts Inc. (AAP - Free Report) has an Earnings ESP of 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at $1.74. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Advance Auto missed earnings in three of the last four quarters, posting a negative average surprise of 4.79%. The company carries a Zacks Rank #4 (Sell). (Read more: AAP Quick QuoteAAP - Free Report) %20Q3%20Earnings:%20What???s%20in%20Store?">Advance Auto Parts Q3 Earnings: What’s in Store?).

ADVANCE AUTO PT Price and EPS Surprise

 

ADVANCE AUTO PT Price and EPS Surprise | ADVANCE AUTO PT Quote

Power Solutions International, Inc. (PSIX - Free Report) currently has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 20 cents. We note that Power Solutions recorded an average negative surprise of 38.09% over the last four quarters. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

POWER SOL INTL Price and EPS Surprise

 

POWER SOL INTL Price and EPS Surprise | POWER SOL INTL Quote

SORL Auto Parts, Inc. has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 16 cents. The company posted positive earnings surprises in two of the trailing four quarters, with an average positive surprise of 7.46%. SORL Auto Parts currently carries a Zacks Rank #3.

SORL AUTO PARTS Price and EPS Surprise

 

SORL AUTO PARTS Price and EPS Surprise | SORL AUTO PARTS Quote

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