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The Zacks Automotive – Domestic industry has reported third-quarter 2024 earnings, with 80% of the five companies that have reported till now (as of Oct. 28), surpassing the Zacks Consensus Estimate.
The Fed’s dovish stance and interest rate cut in September 2024 ensure more activities in the economy, which will likely bolster the industry. Additionally, rising expectations of further interest rate cuts in 2024 and moderating inflation levels add to the industry’s strength. The industry's growing momentum is evident in the recent performance of the Dow Jones Transportation Average, which tracks leading U.S. transportation companies. It has climbed 20.17% over the past year.
Below, we highlight the Q3 earnings results of a few renowned domestic automobile companies.
Earnings in Focus
General Motors
On Oct. 22, General Motors (GM - Free Report) reported third-quarter 2024 adjusted earnings of $2.96 per share, which surpassed the Zacks Consensus Estimate of $2.49. The bottom line surged about 30% from the year-ago quarter level of $2.28. Revenues of $48.75 billion beat the Zacks Consensus Estimate of $44.29 billion, increasing from $44.13 billion recorded in the year-ago period.
GM North America (“GMNA”) generated net revenues of $41.15 billion, increasing 13.98% from $36.1 billion recorded in the corresponding period of 2023. The figure outpaced our model projection of $36.56 billion on higher-than-expected deliveries. GM International's (“GMI”) net revenues in the reported quarter, amounted to $3.51 billion, down from the year-ago quarter’s $4.3 billion, missing our estimate of $3.57 billion.
For full-year 2024, GM now expects adjusted EPS is anticipated in the range of $10-$10.5, up from $9.50-$10, guided earlier.
Shares of GM rose about 8.3% on Oct. 22 before market open, on raised guidance for the third time this year and comfortably surpassed third-quarter revenues and profit expectations, according to Yahoo Finance.
Ford Motor
On Oct. 28 after market close, Ford (F - Free Report) reported adjusted earnings of $0.49 per share for third-quarter 2024, which came in line with the Zacks Consensus Estimate, increasing from $0.39 in the year-ago quarter. The company’s consolidated third-quarter revenues came in at $46.2 billion, up 5.4% year over year, marking the company’s 10th consecutive quarter of year-over-year revenue growth.
The company’s total third-quarter automotive revenues came in at $43.07 billion, beating the Zacks Consensus Estimate of $41.2 billion, rising from $41.18 billion year over year.
Revenues from Ford Blue increased 3% year over year to $26.2 billion, beating our estimate of $23.8 billion. Total wholesale volume in the segment decreased 2% year over year to 721,000 units and fell short of our expectation of 725,000 units. Revenues from Ford Model e declined 33% year over year to $1.2 billion, missing our estimate of $1.38 billion. Total wholesale volume in the segment decreased 11% year over year to 32,000 units but came in line with our expectations.
Revenues from Ford Pro grew 13% year over year to $15.7 billion but missed our expectations of $16.58 billion. Total wholesale volume in the segment increased 9% year over year to 342,000 but missed our expectation of 362,000 units. Third-quarter revenues from the Ford Credit unit came in at $3.12 billion, up 19% year over year and above our estimate of $3.02 billion. Pretax earnings totaled $544 million, up 52% year over year.
For full-year 2024, Ford expects EBIT of around $10 billion. Ford forecasts 2024 EBIT from the Pro and Blue segments to be around $9 billion and $5 billion, respectively. Pretax profit from Ford Credit is anticipated at around $1.6 billion.
Shares of Ford fell about 10% after it reported third-quarter 2024 results after market hours. According to CNBC, even after exceeding Wall Street’s expectations for the third quarter, Ford guided its 2024 earnings guidance to the lower end of its prior forecast.
ETFs in Focus
Below, we highlight a few Auto ETFs for investors to monitor.
Fidelity Electric Vehicles and Future Transportation ETF (FDRV - Free Report)
Fidelity Electric Vehicles and Future Transportation ETF has gained 5.79% over the past month but has fallen 16.56% over the past year. The fund charges an annual fee of 0.39%.
First Trust S-Network Future Vehicles & Technology ETF has gained 3.18% over the past month and 15.02% over the past year. The fund charges an annual fee of 0.70%.
First Trust Nasdaq Transportation ETF has gained 2.8% over the past month and 16.22% over the past year. The fund charges an annual fee of 0.60%.
Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report)
Global X Autonomous & Electric Vehicles ETF has gained 3.47% over the past month and 1.55% over the past year. The fund charges an annual fee of 0.68%.
KraneShares Electric Vehicles and Future Mobility Index ETF (KARS - Free Report)
KraneShares Electric Vehicles and Future Mobility Index ETF has gained 20.92% over the past month but has lost 14.42% over the past year. The fund charges an annual fee of 0.72%.
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Assessing What Q3 Earnings Means for Auto ETFs
The Zacks Automotive – Domestic industry has reported third-quarter 2024 earnings, with 80% of the five companies that have reported till now (as of Oct. 28), surpassing the Zacks Consensus Estimate.
The Fed’s dovish stance and interest rate cut in September 2024 ensure more activities in the economy, which will likely bolster the industry. Additionally, rising expectations of further interest rate cuts in 2024 and moderating inflation levels add to the industry’s strength. The industry's growing momentum is evident in the recent performance of the Dow Jones Transportation Average, which tracks leading U.S. transportation companies. It has climbed 20.17% over the past year.
Below, we highlight the Q3 earnings results of a few renowned domestic automobile companies.
Earnings in Focus
General Motors
On Oct. 22, General Motors (GM - Free Report) reported third-quarter 2024 adjusted earnings of $2.96 per share, which surpassed the Zacks Consensus Estimate of $2.49. The bottom line surged about 30% from the year-ago quarter level of $2.28. Revenues of $48.75 billion beat the Zacks Consensus Estimate of $44.29 billion, increasing from $44.13 billion recorded in the year-ago period.
GM North America (“GMNA”) generated net revenues of $41.15 billion, increasing 13.98% from $36.1 billion recorded in the corresponding period of 2023. The figure outpaced our model projection of $36.56 billion on higher-than-expected deliveries. GM International's (“GMI”) net revenues in the reported quarter, amounted to $3.51 billion, down from the year-ago quarter’s $4.3 billion, missing our estimate of $3.57 billion.
For full-year 2024, GM now expects adjusted EPS is anticipated in the range of $10-$10.5, up from $9.50-$10, guided earlier.
Shares of GM rose about 8.3% on Oct. 22 before market open, on raised guidance for the third time this year and comfortably surpassed third-quarter revenues and profit expectations, according to Yahoo Finance.
Ford Motor
On Oct. 28 after market close, Ford (F - Free Report) reported adjusted earnings of $0.49 per share for third-quarter 2024, which came in line with the Zacks Consensus Estimate, increasing from $0.39 in the year-ago quarter. The company’s consolidated third-quarter revenues came in at $46.2 billion, up 5.4% year over year, marking the company’s 10th consecutive quarter of year-over-year revenue growth.
The company’s total third-quarter automotive revenues came in at $43.07 billion, beating the Zacks Consensus Estimate of $41.2 billion, rising from $41.18 billion year over year.
Revenues from Ford Blue increased 3% year over year to $26.2 billion, beating our estimate of $23.8 billion. Total wholesale volume in the segment decreased 2% year over year to 721,000 units and fell short of our expectation of 725,000 units. Revenues from Ford Model e declined 33% year over year to $1.2 billion, missing our estimate of $1.38 billion. Total wholesale volume in the segment decreased 11% year over year to 32,000 units but came in line with our expectations.
Revenues from Ford Pro grew 13% year over year to $15.7 billion but missed our expectations of $16.58 billion. Total wholesale volume in the segment increased 9% year over year to 342,000 but missed our expectation of 362,000 units. Third-quarter revenues from the Ford Credit unit came in at $3.12 billion, up 19% year over year and above our estimate of $3.02 billion. Pretax earnings totaled $544 million, up 52% year over year.
For full-year 2024, Ford expects EBIT of around $10 billion. Ford forecasts 2024 EBIT from the Pro and Blue segments to be around $9 billion and $5 billion, respectively. Pretax profit from Ford Credit is anticipated at around $1.6 billion.
Shares of Ford fell about 10% after it reported third-quarter 2024 results after market hours. According to CNBC, even after exceeding Wall Street’s expectations for the third quarter, Ford guided its 2024 earnings guidance to the lower end of its prior forecast.
ETFs in Focus
Below, we highlight a few Auto ETFs for investors to monitor.
Fidelity Electric Vehicles and Future Transportation ETF (FDRV - Free Report)
Fidelity Electric Vehicles and Future Transportation ETF has gained 5.79% over the past month but has fallen 16.56% over the past year. The fund charges an annual fee of 0.39%.
First Trust S-Network Future Vehicles & Technology ETF (CARZ - Free Report)
First Trust S-Network Future Vehicles & Technology ETF has gained 3.18% over the past month and 15.02% over the past year. The fund charges an annual fee of 0.70%.
First Trust Nasdaq Transportation ETF (FTXR - Free Report)
First Trust Nasdaq Transportation ETF has gained 2.8% over the past month and 16.22% over the past year. The fund charges an annual fee of 0.60%.
Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report)
Global X Autonomous & Electric Vehicles ETF has gained 3.47% over the past month and 1.55% over the past year. The fund charges an annual fee of 0.68%.
KraneShares Electric Vehicles and Future Mobility Index ETF (KARS - Free Report)
KraneShares Electric Vehicles and Future Mobility Index ETF has gained 20.92% over the past month but has lost 14.42% over the past year. The fund charges an annual fee of 0.72%.