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Auto Stocks' Q1 Earnings Queued for Apr 19: GPC and WBC

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The first-quarter 2018 earnings season for the auto sector is knocking on the door. Two important companies that expect to come up with their results on Apr 19 are Genuine Parts Company GPC and WABCO Holdings Inc. WBC.

Per the latest Earnings Outlook, as of Apr 11, 24 companies from the S&P 500 category have already announced their results. These companies, as a whole, recorded earnings and revenue beat ratios of 75% and 70.8%, respectively. As of that date, no companies from the auto sector reported first-quarter 2018 results.

However, first-quarter 2018 earnings and revenue growth for auto companies are expected to be in the negative territory. Auto stocks are expected to register 9.8% and 3.5% year-over-year decline in earnings and revenues, respectively. However, during the quarter, the S&P 500 companies are anticipated to record 16% and 7.4% year-over-year growth in earnings and revenues, respectively.

In fact, the auto sector, which is grappled with several problems, reported good sales results in March 2018. After a slow start in 2018, major automakers reported robust sales in March. A strong job market and tax reforms drove consumer demand, which in turn aided sales.

In March, General Motors Company GM reported a year-over-year sales increase to 296,341 vehicles. This was attributable to Chevrolet, GMC, Buick and Cadillac brands, each reporting an increase of 15.6%, 11.4%, 28% and 12.7%, respectively. Ford Motor Company F announced a 3.5% increase in year-over-year sales to 244,306 vehicles, boosted by crossover and truck sales. Fiat Chrysler Automobiles N.V. FCAU reported 13.6% growth in year-over-year sales to 216,063 vehicles in the United States.

Currently, Fiat Chrysler sports a Zacks Rank #1 (Strong Buy) while both General Motors and Ford carry Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

We relied on the Zacks methodology, combining a favorable Zacks Rank — Zacks Rank #1 or 2 (Buy) or 3 — and a positive Earnings ESP, to predict chances of a beat this quarter.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Per our proprietary methodology, Earnings ESP shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows, with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.

Atlanta, GA-based Genuine Parts is engaged in distributing automotive and industrial replacement parts, office products and electrical/electronic materials in the United States, Canada and Mexico. Our model does not conclusively predict that the company is likely to deliver a positive surprise as it has an Earnings ESP of -0.38% and a Zacks Rank #3. (Read more: What's in the Cards for Genuine Parts in Q1 Earnings?)

Genuine Parts Company Price and EPS Surprise

Genuine Parts Company Price and EPS Surprise | Genuine Parts Company Quote

Brussels, Belgium-based WABCO Holdings is engaged in providing electronic braking, stability, suspension and transmission control systems for heavy-duty commercial vehicles. Currently, the company has an Earnings ESP of +2.06% and a Zacks Rank #3. It is likely to report a positive earnings surprise in tomorrow’s results.

Wabco Holdings Inc. Price and EPS Surprise

Wabco Holdings Inc. Price and EPS Surprise | Wabco Holdings Inc. Quote

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Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Fiat Chrysler Automobiles N.V. (FCAU) : Free Stock Analysis Report
Wabco Holdings Inc. (WBC) : Free Stock Analysis Report
Genuine Parts Company (GPC) : Free Stock Analysis Report
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