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Auto Stocks' Q2 Earnings Roster for Jul 27: ALV, GT, TEN

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Earnings numbers are pouring in for the Auto sector. Some important auto companies which have already released quarterly results are PACCAR Inc. (PCAR - Free Report) , Harley-Davidson Inc. (HOG - Free Report) , General Motors Company (GM - Free Report) and Ford Motor Company (F - Free Report) . While PACCAR and Harley-Davidson reported earnings beat in the second quarter, General Motors and Ford missed earnings estimates.

Auto companies scheduled to report second-quarter 2018 results on Jul 27 are Autoliv, Inc. (ALV - Free Report) , The Goodyear Tire & Rubber Company (GT - Free Report) and Tenneco Inc. (TEN - Free Report) .
 
According to the latest Earnings Preview, as of Jul 20, 87 companies under the S&P 500 category have reported results for the quarter ending Jun 30. The companies’ earnings and revenue beat ratios were 86.2% and 77%, respectively.

On a year-over-year basis, the auto sector’s earnings are expected to decline 9.7% while revenues are likely to rise 3.5%. However, the S&P 500 companies are estimated to record an increase of 21% and 8.3% on a year-over-year basis in earnings and revenues, respectively.

Favorable job market and tax cuts boosted sales in the auto sector in first-half 2018. Higher demand for roomier vehicles like pickup trucks and sport utility vehicles (SUVs) has prompted auto manufacturers to transform business strategies and investments to generate revenues. In the quarter under review, the auto companies offered big discounts to raise sales.

Also, the inclination toward autonomous and electric vehicles continued as the auto companies continued to invest huge heavily on research and development, while compromising with margins.

Additionally, the pangs of recalls continued to bother these companies.

That said, let’s take a look at the three auto companies, scheduled to announce their results tomorrow.

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 estimates beat. 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 the two key ingredients — Zacks Rank and Earnings 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.

Based in Stockholm, Sweden, Autoliv develops, manufactures and supplies automotive safety system. Our model does not conclusively predict that the company is likely to deliver a positive surprise as it has an Earnings ESP of 0.00% and a Zacks Rank #2.

Autoliv, Inc. Price and EPS Surprise

 

Autoliv, Inc. Price and EPS Surprise | Autoliv, Inc. Quote

Based in Akron, OH, Goodyear Tire sells tires, undertakes automotive repairs and provides other services. Our model does not conclusively predict that the company is likely to deliver a positive surprise as it has an Earnings ESP of -7.92% and a Zacks Rank #3.

Based in Lake Forest, IL, Tenneco IL is a leading designer, manufacturer and supplier of emission control as well as ride control systems. Currently, it has an Earnings ESP of -0.67% and a Zacks Rank #3. The company is not expected to deliver a positive earnings surprise in tomorrow’s results.

Tenneco Inc. Price and EPS Surprise

 

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

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