|Bid||0.00 x 800|
|Ask||0.00 x 900|
|Day's Range||40.97 - 41.25|
|52 Week Range||35.88 - 45.57|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.63%|
AutoZone’s (AZO) results are mainly divided into two business segments: retail, or DIY (do-it-yourself), and commercial, or DIFM (do-it-for-me). The DIY segment yields wider margins than DIFM. Let’s take a look how the DIY segment performed in the third fiscal quarter and other key decisions AutoZone has made recently.
AutoZone (AZO), the top US auto part retailer by store count, released its fiscal third-quarter (ended May 5) results on May 22. In the quarter, the company’s adjusted EPS rose 17.3% YoY (year-over-year) to $13.42 from $11.44, beating analysts’ estimate of $12.97.
This was the eighth consecutive top-line beat for the apparel retailer. While the company managed to outperform on the overall top line, it missed consensus same-store-sales expectations. Behind the softness in comps was the poor showing from the company’s namesake brand, Gap, which reported a 4% decline in comps versus consensus forecasts of a 0.4% decline.
Total sales increased 10% YoY (year-over-year) to $3.78 billion, which was $172 million more than the consensus. Earnings per share rose 16.7% YoY to $0.44 but were below analysts’ expectations of a 27.8% YoY jump to $0.46. Analysts lowered Gap’s price target after the results, including Deutsche Bank (from $34 to $33), Jefferies (from $48 to $45), J.P. Morgan (from $30 to $29), and Credit Suisse (from $35 to $33).
Last week, the broader market traded on a negative note, and the S&P 500 benchmark fell 0.5%. Uncertainties about the US-China trade negotiations could be one of the key reasons that kept investors at bay in the week ended May 18. Despite these negative broader market sentiments, some of the auto stocks managed to remain in positive territory last week. Let’s take a closer look.
In contrast, the sales of the company’s SUV (sports utility vehicles) segment showcased a drop of ~4.6% to 69,940 units in April 2018 from 73,318 units sold in April 2017. Previously in March 2018, Ford reported a 6.7% rise in truck segment sales, which stood at 109,276 units, much higher than in April 2018. Ford’s US sales to retail customers were at 137,049 vehicle units with about a 2.6% increase in April 2018 from the corresponding month of the previous year.
According to the latest data compiled by Thomson Reuters, of the 22 analysts covering Toyota Motor (TM), 45% have given the stock “buy” recommendations, and 50% of analysts have given it “hold” recommendations. The remaining 5% of analysts have given it “sell” recommendations.
Previously, we looked at how America’s three major auto part retailers have outperformed the broader market in May 2018 so far. These companies included AutoZone (AZO), O’Reilly Automotive (ORLY), and Advanced Auto Parts (AAP). However, AutoZone was still trading in negative territory on a year-to-date basis. Weakness in the company’s sales growth and mixed profit margins could be two of the primary reasons for investors’ pessimism.
In its fiscal 2018, the company’s consolidated vehicle sales stood at 8.96 million units, nearly flat with a minor drop of 0.1% compared to the 8.97 million units it sold in fiscal 2017. Now, let’s find out how Toyota’s revenue shaped up in fiscal 2018. Despite its nearly flat consolidated vehicle sales, Toyota reported a handsome increase of 6.5% in its fiscal 2018 global revenue, which stood at 29.4 trillion Japanese yen.
Tesla’s (TSLA) CEO, Elon Musk, made a comment on businesses with moats while answering a question during the company’s 1Q18 earnings conference call. Musk mentioned that he thinks that “moats are lame.” He was referring to the idea popularized by well-known value investor Warren Buffett that a business entity can maintain a competitive advantage over others by using an economic moat. Musk argued that “the pace of innovation” is of higher importance than building a moat for defense.
Most of this negative publicity for Tesla has been fueled by CEO Elon Musk’s unexpected behavior on the company’s earnings call, which some felt was rude. During the call, Musk ignored two analysts’ questions by saying, “Boring bonehead questions are not cool. Is Elon Musk’s anger justified?
Model 3 production updates have been one of the key drivers of Tesla’s stock price in the last few months. In this article, we’ll take a look how the Model 3 is still able to maintain a strong position in the mass-market EV (electric vehicle) segment (XLY). It has been over two years now since the Tesla Model 3 was unveiled at an electrifying event on March 31, 2016.
Last year, the company’s shipments remained well above the 8,000 psychological mark and stood firm at 8,398 car units, compared to 8,014 in 2016. Ferrari’s global shipments grew 6.2% YoY (year-over-year). Now let’s move on by reviewing Ferrari’s progress toward its 2018 guidance.
Will Fiat Chrysler Be Able to Solve Its China Puzzle? Previously in this series, we discussed how the majority of Wall Street analysts gave a “buy” rating to Fiat Chrysler Automobiles (FCAU). As of May 7, Fiat Chrysler stock was trading at $22.84, not far away from its all-time high of $24.95, which was posted on January 25.
According to the latest data compiled by Reuters, out of 24 analysts covering Fiat Chrysler Automobiles (FCAU), 42% gave the stock a “buy” recommendation, 46% gave it a “hold” recommendation, and the remaining 12% gave it a “sell” rating.
In 1Q18, Ferrari (RACE) reported net revenues of 831 million euros or ~$987 million. The company’s revenues rose marginally, by ~1.3%, from 821 million euros in the first quarter of 2017. Ferrari’s shipments to all its key markets rose on a YoY (year-over-year) basis. Globally, the company shipped about 2,128 car units to customers in 1Q18, up 6% from the 2,003 units shipped in 1Q17 and higher than the 2,017 units shipped in 4Q17.
In the previous two parts of this series, we looked at Fiat Chrysler’s (FCAU) revenues from its key markets including North America, Europe, Asia, and Latin America. Its revenues from Latin America and Europe rose, which also boosted its total revenues in the first quarter. Now, let’s move on by looking at the company’s 1Q18 margins and profitability.
The Italian-American auto company Fiat Chrysler Automobiles (FACU) announced its 1Q18 results on April 26. Since then, its stock has lost 2.8% as of May 7. The company reported solid adjusted EPS (earnings per share) of 0.66 euros, or about $0.80, which was about 54% higher than EPS of 0.43 euros in the corresponding quarter of 2017. This was also on par with analysts’ consensus estimate of 0.66 euros. You can read about FCAU’s 1Q18 earnings in Fiat Chrysler’s Record Q1 Profits, Debt Reduction on Track.
CEO Elon Musk may end up getting the last laugh after all. Tesla shares were up nearly 3% Monday afternoon, taking the stock's price back above $300 and erasing all of the losses the company's shares took following last week's much-talked-about earnings call. Tesla's May 2 earnings call was most notable for the way Musk was dismissive of questions from a pair of Wall Street analysts who asked questions that the mercurial CEO believed were inconsequential.
In the previous part of this series, we looked at Wall Street analysts’ recommendations for Tesla (TSLA). Most of the analysts recommend a “hold” on Tesla stock. Tesla stock posted a fresh all-time high near $389.61 in September 2017. Since then, the stock has lost ~23% as of May 2. So far in 2018, Tesla stock has lost ~3.3%. In comparison, its peers (FXD), General Motors (GM) and Ford (F) are trading with ~11.7% and 9.2% YTD (year-to-date) losses, respectively. Fiat Chrysler (FCAU) has risen ~26.8% YTD.
In 1Q18, Tesla’s (TSLA) consolidated gross profits stood at $457 million—down 28.3% from $637 million in 1Q17 and up 4% from $439 million in 4Q17. Tesla’s 1Q18 consolidated GAAP (generally accepted accounting principles) gross margin improved marginally to 13.4% from 13.3% in 4Q17. Tesla’s 1Q18 consolidated gross margin was better than analysts’ estimate of 12.9%.
In 1Q18, Tesla (TSLA) reported GAAP (generally accepted accounting principles) revenue of $3.4 billion. The revenue reflected an increase of 26.4% YoY (year-over-year) from $2.7 billion in 1Q17. However, Tesla’s revenue growth rate was better at 43.9% YoY in 4Q17. Tesla managed to beat analysts’ 1Q18 revenue estimate of $3.2 billion. The company’s 1Q18 revenue was also ~3.7% higher from its GAAP revenue of $3.3 billion in 4Q17.
Tesla (TSLA) released its 1Q18 results after the market closed on May 2. The company’s adjusted net loss for the quarter was $3.35 per share on a non-GAAP (generally accepted accounting principles) basis. So far, the adjusted net loss was the biggest quarterly loss that Tesla has reported. However, the adjusted net loss was better than analysts’ estimates of a net loss of $3.48 per share. The company’s 1Q18 GAAP net loss was at $4.19 per share—compared to its net loss of $2.04 per share in 1Q17 and its net loss of $4.01 per share in 4Q17.
Honda Motor Company (HMC) reported its fiscal 2018 results on April 27, 2018. The company reported a 10% YoY (year-over-year) rise in its revenue to 15 trillion Japanese yen, or ~$140 billion.
Previously in this series, we saw why analysts could be expecting Fiat Chrysler Automobiles’ (FCAU) 1Q18 revenues to be marginally higher YoY (year-over-year). Despite lower 1Q US sales, continued strength in European and Latin American sales could benefit the company. Now, let’s take a look at Fiat Chrysler’s 1Q18 margins estimates.