GM, F, PCAR, ORLY & LKQ Revenue Bulletin

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Last week, the Association of European Automobile Manufacturers released data on commercial vehicle registrations made in September 2021. New registrations fell 12.3% year-on-year against a backdrop of persistent shortage, which impacted sales volumes in all major markets. Registrations in Spain, Italy, France and Germany fell by 26.7%, 10.4%, 16.1% and 18.2% respectively. Meanwhile, for the first nine months of 2021, demand for commercial vehicles in the European Union region grew 19.1% year-on-year to 1.4 million units. Registrations in key countries including Italy, Spain, Germany and France increased by 29.7%, 10.4%, 8.5% and 16.8% year-on-year respectively.

On the earnings side, five S&P 500 auto companies, namely General Motors DG, Ford F, PACCAR PCAR, O’Reilly Automotive ORLY, and LKQ Corp. LKQ – released its quarterly results last week. While O’Reilly wears a Zacks Rank # 2 (Buy), General Motors, Ford and LKQ Corp. carry a Zacks Rank # 3 (Hold). Meanwhile, PCCAR currently holds a Rank 4 of Zacks (sell).

You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Here is a rundown of the earnings highlights from each of these companies.

1. General Motors reported adjusted earnings of $ 1.52 per share for the third quarter of 2021, beating Zacks’ consensus estimate of $ 1.07. The bottom line, however, compares unfavorably with earnings of $ 2.83 per share a year ago. The revenue of $ 26,779 million fell short of Zacks’ consensus estimate of $ 31,167 million. The higher figure also compares unfavorably with the figure of $ 35,480 million a year ago. For 2021, this company Zacks Rank # 3 now expects Adjusted EPS in the range of $ 5.70 to $ 6.70, up from the previous forecast of $ 5.40 to $ 6.40. (Top General Motors Third Quarter Profits, Miss Mark Sales, ’21 View Up)

2. Ford reported adjusted earnings of 51 cents per share for the third quarter of 2021, beating Zacks’ consensus estimate of 28 cents. The bottom line, however, compares unfavorably with earnings of 65 cents per share a year ago. The company’s consolidated third-quarter revenue was $ 35,683 million, down 4.8% year-over-year. Ford also announced the decision to restore its regular dividend from the fourth quarter, more than a year and a half after suspending payments due to the coronavirus pandemic. (Ford Beats On Third Quarter Results, View Ups ’21, Restores Dividend)

3. LKQ Corp. reported adjusted earnings of $ 1.02 per share for the third quarter of 2021, beating Zacks’ consensus estimate of 86 cents. Net income also increased 36% year-on-year. The aftermarket auto parts distributor posted quarterly revenue of $ 3,296.6 million, slightly exceeding Zacks’ consensus estimate of $ 3,237 million. In addition, sales rose 8.2% from the previous year’s level of $ 3,047.7 million. For 2021, the company is now forecasting adjusted EPS of $ 3.78 to $ 3.88 per share, up from the previous estimate of $ 3.55 to $ 3.75. (LKQ Crushes Third Quarter Revenue and Sales Estimates, Ups ’21 View (Revised))

4. PACCAR reported earnings of $ 1.08 per share for the third quarter of 2021, missing Zacks’ consensus estimate of $ 1.21. Consolidated revenues (including trucks and financial services) were $ 5,146.8 million, up from $ 4,936 million in the corresponding quarter of 2020. Sales of Trucks, Parts and Other amounted to $ 4,737.7 million, exceeding the consensus of $ 4,487 million. For 2021, investments are projected between 525 and 550 million dollars, while R&D spending is estimated in the range of 320 to 340 million dollars. (PACCAR Q3 Profits Missing Due to Low Trucks Unit Profits)

5. O’Reilly Automotive reported earnings per share of $ 8.07 in the third quarter of 2021, beating Zacks’ consensus estimate of $ 6.99 thanks to growth in same-store sales. Comps was up 6.7% year-over-year for the quarter compared to Zacks’ consensus estimate of a 15.02% decline. Net income also increased from $ 7.07 per share recorded in the prior year quarter. Quarterly revenues of $ 3,479.6 million exceeded the consensus mark of $ 3,217 million and increased from the previous year’s level of $ 3,207.6 million. (O’Reilly Third Quarter Profits Surpass Performance Growth Estimates)

Price return

The following table shows the price development of some of the major automotive players over the week and over the past six months.

Company Last week Last 6 months

GM -5.8% -4.7%
F 4.9% 46.9%
TSLA 22.5% 62.7%
MT 1.8% 16%
HMC -1.1% -1.7%
PORK -1.1% -25%
PAA -2.8% 11.8%
AZO -2.6% 21%

Over the past six months, all stocks except General Motors, Honda and Harley-Davidson posted gains. Last week also posted a mixed performance, with Tesla recording the maximum gains and General Motors losing the most.

What’s next in the auto space?

Industry watchers will be closely watching US car sales for October 2021, which will be released this week. Investors will keep tabs on quarterly releases from major Japan-based automakers Honda HMC and Toyota TM who are expected to report this week. Plus, stay tuned for earnings posts from various automotive equipment suppliers including BorgWarner, Magna and Tenneco this week.

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Ford Motor Company (F): Free Inventory Analysis Report

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PACCAR Inc. (PCAR): Free Stock Analysis Report

O’Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report

Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report

General Motors Company (GM): Free Inventory Analysis Report

LKQ Corporation (LKQ): Free Stock Analysis Report

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