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Tesla Q1 Earnings Beat Estimates, Decline YoY: ETFs in Focus
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Tesla Motors (TSLA - Free Report) reported mixed Q1 results, wherein it beat earnings estimates but lagged on revenues. Shares of Tesla plunged about 6% in after-hours trading.
This has put the ETFs having a substantial allocation to this luxury carmaker like MeetKevin Pricing Power ETF (PP) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ) , Vanguard Consumer Discretionary ETF (VCR - Free Report) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) in focus.
Q1 Earnings in Focus
Adjusted earnings per share came in at 85 cents, beating the Zacks Consensus Estimate by a penny but declining 21% from year-ago earnings. Revenues jumped 24% year over year to $23.3 billion but came in slightly below the Zacks Consensus Estimate of $23.47 billion. Revenue growth was driven by increased vehicle deliveries and growth in other parts of the business, offset by lower vehicle average selling prices and currency headwinds.
A series of aggressive price cuts amid increasing competition among established car companies and Chinese upstart has reduced Tesla’s profitability. The company slashed prices globally by as much as 20% in January, unleashing a price war. The basic Model Y, which used to sell for $65,990, now costs $54,990.
Tesla delivered 422,875 (412,180 Model 3 and Y and 10,695 Model S and X) cars worldwide in the first quarter. This is up 36% from the year-ago quarter and 4% from the prior quarter. The electric carmaker produced a record 440,808 (421,371 Model 3 and Y, and 19,437 Model S and X) vehicles during the quarter (read: Tesla Rolls Out Record Deliveries in Q1: ETFs in Focus).
MeetKevin Pricing Power ETF is an actively managed ETF that seeks to achieve its investment objective by investing primarily in the U.S.-listed equity securities of Innovative Companies that, in Kevin’s view, have more “pricing power” than their peers. The fund holds a small basket of 17 stocks, with Tesla occupying the top position at 24.2%.
MeetKevin Pricing Power ETF newly debuted in the space at the end of November and has accumulated $23.3 million in its asset base. It charges 77 bps in annual fees and trades in a lower volume of 25,000 shares a day on average (read: 5 ETF Areas Up At Least 35% This Year).
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index.
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $14.6 billion and an average daily volume of around 5.5 million shares. Holding 53 securities in its basket, Tesla takes the second spot with 15.1% of assets. Consumer Discretionary Select Sector SPDR Fund charges 10 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
ARK Autonomous Technology & Robotics ETF is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services as well as technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials and transportation. This approach results in a basket of 36 stocks, with Tesla occupying the top spot with a 13.5% share.
ARK Autonomous Technology & Robotics ETF has accumulated $896.5 million in its asset base and charges 75 bps in fees per year. It trades in a volume of 76,000 shares a day on average.
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 307 stocks in its basket. Of these, Tesla occupies the second position with a 12.5% allocation. Broadline takes the largest share at 23.8%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots.
Vanguard Consumer Discretionary ETF charges investors 10 bps in annual fees, while volume is moderate at nearly 63,000 shares a day. The product has managed about $4 billion in its asset base and carries a Zacks ETF Rank #1 with a Medium risk outlook (read: Tesla Plans Another Megafactory in China: ETFs to Buy).
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 303 stocks in its basket. Of these, TSLA takes the second spot with a 12.5% share.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.1 billion in its asset base while trading in a good volume of around 72,000 shares a day on average. Fidelity MSCI Consumer Discretionary Index ETF charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
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Tesla Q1 Earnings Beat Estimates, Decline YoY: ETFs in Focus
Tesla Motors (TSLA - Free Report) reported mixed Q1 results, wherein it beat earnings estimates but lagged on revenues. Shares of Tesla plunged about 6% in after-hours trading.
This has put the ETFs having a substantial allocation to this luxury carmaker like MeetKevin Pricing Power ETF (PP) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ) , Vanguard Consumer Discretionary ETF (VCR - Free Report) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) in focus.
Q1 Earnings in Focus
Adjusted earnings per share came in at 85 cents, beating the Zacks Consensus Estimate by a penny but declining 21% from year-ago earnings. Revenues jumped 24% year over year to $23.3 billion but came in slightly below the Zacks Consensus Estimate of $23.47 billion. Revenue growth was driven by increased vehicle deliveries and growth in other parts of the business, offset by lower vehicle average selling prices and currency headwinds.
A series of aggressive price cuts amid increasing competition among established car companies and Chinese upstart has reduced Tesla’s profitability. The company slashed prices globally by as much as 20% in January, unleashing a price war. The basic Model Y, which used to sell for $65,990, now costs $54,990.
Tesla delivered 422,875 (412,180 Model 3 and Y and 10,695 Model S and X) cars worldwide in the first quarter. This is up 36% from the year-ago quarter and 4% from the prior quarter. The electric carmaker produced a record 440,808 (421,371 Model 3 and Y, and 19,437 Model S and X) vehicles during the quarter (read: Tesla Rolls Out Record Deliveries in Q1: ETFs in Focus).
ETFs in Focus
MeetKevin Pricing Power ETF (PP)
MeetKevin Pricing Power ETF is an actively managed ETF that seeks to achieve its investment objective by investing primarily in the U.S.-listed equity securities of Innovative Companies that, in Kevin’s view, have more “pricing power” than their peers. The fund holds a small basket of 17 stocks, with Tesla occupying the top position at 24.2%.
MeetKevin Pricing Power ETF newly debuted in the space at the end of November and has accumulated $23.3 million in its asset base. It charges 77 bps in annual fees and trades in a lower volume of 25,000 shares a day on average (read: 5 ETF Areas Up At Least 35% This Year).
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index.
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $14.6 billion and an average daily volume of around 5.5 million shares. Holding 53 securities in its basket, Tesla takes the second spot with 15.1% of assets. Consumer Discretionary Select Sector SPDR Fund charges 10 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
ARK Autonomous Technology & Robotics ETF (ARKQ)
ARK Autonomous Technology & Robotics ETF is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services as well as technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials and transportation. This approach results in a basket of 36 stocks, with Tesla occupying the top spot with a 13.5% share.
ARK Autonomous Technology & Robotics ETF has accumulated $896.5 million in its asset base and charges 75 bps in fees per year. It trades in a volume of 76,000 shares a day on average.
Vanguard Consumer Discretionary ETF (VCR - Free Report)
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 307 stocks in its basket. Of these, Tesla occupies the second position with a 12.5% allocation. Broadline takes the largest share at 23.8%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots.
Vanguard Consumer Discretionary ETF charges investors 10 bps in annual fees, while volume is moderate at nearly 63,000 shares a day. The product has managed about $4 billion in its asset base and carries a Zacks ETF Rank #1 with a Medium risk outlook (read: Tesla Plans Another Megafactory in China: ETFs to Buy).
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 303 stocks in its basket. Of these, TSLA takes the second spot with a 12.5% share.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.1 billion in its asset base while trading in a good volume of around 72,000 shares a day on average. Fidelity MSCI Consumer Discretionary Index ETF charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.