|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||160.50 - 162.39|
|52 Week Range||138.40 - 171.48|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.10%|
In 4Q17, Ford (F) reported an adjusted pre-tax profit of $1.4 billion from its automotive segment, with an operating profit margin of 3.7%. This margin was smaller than its adjusted operating profit margin of 5.7% in 4Q16. Ford’s pre-tax profits worsened in all key reporting segments but South America. While its South American profits improved, they remained in negative territory. Despite positive growth in its global wholesale volumes, Ford’s pre-tax profit in 4Q17 was hurt by higher commodity prices, recall costs, and currency headwinds driven by the British pound.
Previously, we looked at how Ford (F) stock underperformed the S&P 500 in 1Q18, while Fiat Chrysler (FCAU), Ferrari (RACE), and Toyota (TM) outperformed the broader market. US auto companies Ford and General Motors (GM) faced investors’ concerns about softening US vehicle sales and trade-war fears. On the brighter side, US light vehicle sales remained firm in 1Q18, rising ~1.9% YoY (year-over-year), which could why most auto stocks are trading positively in April. Let’s look at what we can expect from Ford’s 1Q18 earnings results.
According to Reuters, of the 21 analysts covering Honda (HMC) on April 11, 2018, ~62% recommended “buy” and 38% recommended “hold.” There were no “sell” recommendations. About ten days ago, 57% of analysts were recommending “buy.”
In the previous part, we looked at analysts’ views on Tesla (TSLA) and discussed why many have turned negative on its stock in the last couple of months. In this part, we’ll look at General Motors (GM). According to Reuters, of the 24 analysts covering the stock on April 11, 2018, 50% recommended “buy,” 42% recommended “hold,” and 8% expected it to underperform, recommending “sell.”
According to recent data by Reuters, 46% of the 24 analysts covering Fiat Chrysler Automobiles (FCAU) stock have given it “buy” ratings. In comparison, ~45% and 62% of the analysts covering Toyota Motor (TM) and Honda Motor Company (HMC) have given their stocks “buy” ratings, respectively.
In March 2018, Toyota Motor (TM), the largest Japanese automaker, reported a YoY (year-over-year) rise of 3.5% in its North American sales volumes to 223,000 units. In February 2018, the company’s sales rose 4.5% YoY to 182,000 vehicles.
The FOMC (Federal Open Market Committee) updated its economic projections for the US economy at its recently concluded March meeting. Along with a statement that included a 0.25% rate hike, the FOMC released its upgraded economic projections through its Summary of Economic Projections (or SEP) report. The report is released four times per year and contains Fed members’ projections for GDP growth, inflation (TIP), unemployment, and the policy interest rate.
The Bureau of Economic Analysis (or BEA) released the third and final estimate for the fourth quarter GDP, indicating that the US economy has improved at an annual rate of 2.9% in the fourth quarter. The third estimate was above the second estimate of 2.5% and below the third quarter GDP growth rate of 3.2%. On an annual basis, real GDP increased 2.3% in 2017 compared to the 1.5% increase in 2016.
Toyota (TM), the largest Japanese automaker, became the world’s largest automaker by sales volume in 2008 for the first time, surpassing General Motors (GM). As of March 20, TM’s ADR (American depository receipt) has gone up by 1.6% so far in 2018.
In 2017, Fiat Chrysler Automobiles (FCAU) yielded impressive returns of 96.4%. The company’s consistently expanding profit margins and its efforts to improve its debt position befitted its stock last year. As of March 19, Fiat Chrysler’s stock was trading with 16.4% YTD (year-to-date) gains.
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