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Auto Stocks' Earnings Slated on Jan 29: PCAR, HOG, ALV, MTOR

Zacks Equity Research

Several Auto companies are scheduled to release their fourth-quarter 2018 earnings this week. In the last week, two auto giants — Ford Motor Company F and Lear Corporation LEA — announced their quarterly numbers. Ford reported earnings miss while Lear surpassed estimates.

Among a number of auto companies, PACCAR Inc. PCAR, Harley-Davidson, Inc. HOG, Autoliv, Inc. ALV are slated to release fourth-quarter 2018 results and Meritor, Inc. MTOR is scheduled to release first-quarter 2019 quarterly numbers on Jan 29.

Per the latest Earnings Preview, on a year-over-year basis, the auto sector’s earnings are expected to decline 15.3% while revenues are likely to decrease 1.7%.

In fourth-quarter 2018, rise in employment rate, reasonable gasoline prices, sturdy consumer confidence, and rise in income and wages for some companies are likely to boost auto demand. Most of the automakers witnessed increasing demand for larger and comfortable pickup trucks, sports utility vehicles (SUVs), and crossovers. However, this increase was partially offset by a continuous decline in demand for traditional passenger cars.

Further, declining demand in China, ongoing trade and tariff disputes, rising interest rates, and higher vehicle prices are likely to hamper auto sector sales. Additionally, over the past few months, many automakers have recalled vehicles in huge numbers from across the world.

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

We relied on the proven Zacks quantitative model, combining a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) with a positive Earnings ESP, to predict chances of an earnings beat this quarter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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. Our research shows that with the combination of the two key ingredients — a favorable Zacks Rank and Earnings ESP — chances of a positive surprise are as high as 70% for stocks lined up for an earnings release.

Headquartered in Bellevue, WA, PACCAR engages in designing, manufacturing and providing customer support for premium light, medium and heavy-duty trucks. Further, it produces advanced diesel engines and distributes truck parts. In the last reported quarter, the company pulled off a positive surprise. Further, it surpassed estimates in all the trailing four quarters, the average beat being 7.6%.

PACCAR has a long-term earnings growth rate of 10.8%. Our proven model does not conclusively predict an earnings beat for PACCAR. This is because it has an Earnings ESP of -1.00% and a Zacks Rank #3. (Read more: PACCAR to Report Q4 Earnings: What's in the Offing?)

PACCAR Inc. Price and EPS Surprise

 

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

Milwaukee, WI-based Harley-Davidson manufactures and sells custom, cruiser, and touring motorcycles. At present, the company is working on several initiatives to expand presence in international markets and revive the U.S. business through investments. Our proven model predicts an earnings beat for Harley-Davidson. This is because it has an Earnings ESP of +14.46% and a Zacks Rank #3.

In the last reported quarter, Harley-Davidson outpaced estimates. Further, it has a long-term earnings growth rate of 8%. (Read more: Is a Beat in Store for Harley-Davidson in Q4 Earnings?)

Harley-Davidson, Inc. Price and EPS Surprise

 

Harley-Davidson, Inc. Price and EPS Surprise | Harley-Davidson, Inc. Quote

Stockholm, Sweden-based Autoliv is engaged in developing, manufacturing, and marketing airbags, seatbelts and steering wheels. Our proven model does not conclusively predict an earnings beat for Autoliv. This is because it has an Earnings ESP of +2.91% and a Zacks Rank #4 (Sell).

In the last reported quarter, the company pulled off a negative surprise. It surpassed estimates in two occasions while missing on the other two, the average beat being 3%. It has a long-term earnings growth rate of 16.7%.

Autoliv, Inc. Price and EPS Surprise

 

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

Headquartered in Troy, MI, Meritor is a global automotive parts manufacturer and supplier. The company supplies a broad range of integrated systems, modules, and components for commercial and specialty vehicles worldwide, with leading positions in most of its markets. Our proven model predicts an earnings beat for Meritor. This is because it has an Earnings ESP of +2.91% and a Zacks Rank #3.

In the last reported quarter, the company pulled off a positive earnings surprise. Further, it surpassed estimates in all the trailing four quarters, the average beat being 17.4%.
 

Meritor, Inc. Price and EPS Surprise

 

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

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Ford Motor Company (F) : Free Stock Analysis Report
 
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