Auto Stock Roundup: U.S. Sales Decline in May, Thor Industries Beats Expectations in Q3
The auto sector saw mixed developments over the last week. U.S. light-vehicle sales declined year over year in May 2017, continuing the downward trend seen lately.
Tesla Inc. TSLA revealed plans for facility expansion to manufacture Model Y. Additionally, the company will resume the sale of solar roof panels in Nevada.
Thor Industries, Inc. THO reported better-than-expected results in third-quarter fiscal 2017.
Toyota Motor Corp Ltd TM backed engineering group is on track to develop flying cars. Meanwhile, Harley-Davidson, Inc. HOG recalled over 57,000 motorcycles globally due to issues in the oil line clamp.
Recap of the Week’s Most Important Stories
1. U.S. light-vehicle sales fell 0.5% year over year to 1.52 million units in May 2017. Per Motor Intelligence, the demand for cars, sport utility vehicles and pickup trucks inched down to an annualized pace of 16.66 million vehicles in May from 17.17 million recorded a year ago.
2. Tesla has laid out plans for facility expansion to manufacture its Model Y vehicles. The vehicle will be produced in a newly-constructed facility, while batteries and other components will be supplied by the existing gigafactory in Nevada. The model is expected to be launched in 2019. In order to deal with shortage of lithium-ion batteries, the company is planning to build three additional gigafactories for effective production of both vehicles and batteries.
Meanwhile, the solar business is expected to see activity in Nevada again. The company announced its decision to resume its rooftop panel selling business in the state. This comes after a new bill was signed, which will ensure the sale of the excess power generated from customers' rooftop solar installations at near the full retail rate by electric utilities, rather than the almost one-third price they were entitled per a prior policy. (Read More: Tesla to Resume Rooftop Solar Panel Sale in Nevada)
Tesla carries a Zacks Rank #5 (Strong Sell).
3. Thor Industries reported third-quarter fiscal 2017 (ended Apr 30, 2017) earnings of $2.11 per share, surpassing the Zacks Consensus Estimate of $1.87. Revenues rose 56.9% year over year to a third-quarter record of $2.02 billion and also outperformed the Zacks Consensus Estimate of $1.96 billion.
The company incurred capital expenditures of $28.5 million in third-quarter fiscal 2017, thus bringing the year-to-date investment to $79.5 million. Total capital expenditure in fiscal 2017 is projected to be approximately $130 million due to an investment of roughly $50 million in additional capital projects during fourth quarter, to meet product demands. (Read More: Thor Industries Beats Q3 Earnings & Revenue Estimates)
Thor Industries currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
4. Toyota-supported engineer group, Cartivator aims to build and commercialize flying cars by 2025. It is currently working on a prototype, which is expected to be able to light up the Olympic flame for the opening ceremony of the Tokyo 2020 Summer Games. Toyotaagreed to invest ¥42.5 million (roughly $385,000) in the project over the next three years. (Read More: Toyota Backed Carvitor Working on Flying Car Prototype)
Toyota carries a Zacks Rank #3 (Hold).
5. Harley-Davidson has announced the voluntary recall of 57,138 Touring motorcycles globally. An oil line clamp in the said vehicles may have been inappropriately installed, resulting in the recall. The issue has caused some crashes, one resulting in a minor injury. Free repairs are likely to be performed at local dealerships. (Read More: Harley-Davidson to Recall Over 57K Touring Motorcycles)
Harley-Davidson also carries a Zacks Rank #3.
Performance
Auto stocks recorded mixed performance over the last week. Advance Auto Parts, Inc. AAP lost the most among the stocks listed below, while Tesla was the biggest gainer.
In the last six months as well, Advance Auto Parts was the worst performer, while Tesla was the sole gainer.
Company | Last 1-Week Period | Last 6 Months |
GM | +1.2% | -5.7% |
F | -0.4% | -15.0% |
TSLA | +5.5% | +87.0% |
TM | 0.0% | -12.4% |
HMC | +1.1% | -6.8% |
HOG | -1.7% | -15.3% |
AAP | -2.3% | -26.0% |
AZO | +0.1% | -24.9% |
Auto-Tires-Trucks Sector 5YR % Return
Auto-Tires-Trucks Sector 5YR % Return
What’s Next in the Auto Space?
Some automakers are expected to report Europe and China sales in the coming week.
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