|Bid||0.00 x 800|
|Ask||0.00 x 3000|
|Day's Range||43.26 - 43.44|
|52 Week Range||37.98 - 45.57|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.63%|
In 2018 so far, Harley-Davidson (HOG) has fallen ~10.7% as of September 20. In comparison, auto stocks (FXD) Honda Motor Company (HMC), Ford Motor Company (F), and General Motors (GM) have fallen 10.2%, 20.6%, and 12.0% year-to-date, respectively.
In the previous part of this series, we looked at AutoZone’s (AZO) profitability and factors that drove it in its fiscal fourth quarter. AZO’s gross profit margin was better than auto parts retailers (FXD) Advance Auto Parts (AAP) and O’Reilly Automotive (ORLY) in their recently reported quarters. AZO has risen 6.0% YTD (year-to-date) while AAP and ORLY have seen 70.1% and 42.6% YTD gains, respectively. Meanwhile, Ford (F) and General Motors (GM) have lost 20.8% and 12.8% YTD, respectively.
In the third quarter so far, Fiat Chrysler Automobiles (FCAU) has fallen 2.9% as of September 20. In 2017, FCAU impressed investors by yielding the highest returns among auto stocks (FXD) at 96.4%. After gaining 15% in the first quarter, the stock turned negative in the second quarter this year and saw a 7.9% fall.
AutoZone’s (AZO) results are mainly divided into two business segments: DIY (Do It Yourself) and Commercial, also referred to as DIFM (Do It for Me). The DIY segment is targeted to retail customers, which yield higher margins for the company than the DIFM segment. Let’s take a look at how the DIY segment performed in the fiscal fourth quarter.
Last week, General Motors (GM) stock fell 5.9% after registering a minor rise of 0.3% in the previous week. While GM stock rose 16.2% in May, it turned negative in June and fell ~7.7%, 3.8%, and 4.9% in June, July, and August, respectively.
In the previous part of this series, we explored how Wall Street analysts are rating the top two US auto giants (FXD), Ford (F) and General Motors (GM). Currently, more analysts by percentage are favoring a “buy” for GM stock, with a higher upside potential compared to Ford stock. As of September 5, GM’s EV-to-EBITDA ratio was 8.1x, which was much lower than Ford’s, its direct competitor, at 13.3x.
In August, Ford Motor Company (F) sold 78,809 units of SUVs (sports utility vehicles) with a solid 20.1% YoY (year-over-year) gain. Sales of its truck segment showed strong gains of ~5.7% to 102,173 units in August, from 96,619 units sold in August 2017.
In August, Fiat Chrysler Automobiles’ (FCAU) total US sales were 193,718 vehicles, ~10% higher than its US sales of 176,033 units in the same month of 2017 and ~13.3% up from 170,970 units in July 2018.
In the week ended August 31, General Motors (GM) stock rose 0.3% after a weekly loss of ~1.2% in the previous week. While GM stock gained 8.4% in the second quarter, it began the third quarter on a negative note with a loss of 3.8% in July as compared to a 3.6% rise in the S&P 500 Index. In its comments, the company noted that tariffs on automobile imports (XLY) after steel and aluminum tariffs and Section 301 tariffs against Chinese imports “could be detrimental” to the company.
In 2017, Harley-Davidson (HOG) maintained the highest US market share in the heavyweight motorcycle sector. In 2018 so far, HOG has lost ~15.3% through August 28, making it the lowest performer in the auto industry. In comparison, auto stocks (FXD) Honda (HMC), Ford (F), and General Motors (GM) have fallen 10.6%, 19.0%, and 9.0%, respectively, year-to-date.
In 2017, Fiat Chrysler (FCAU) impressed investors by yielding an impressive positive return of 96.4%, the highest return among the auto stocks (FXD) in our coverage. After gaining 15.0% in the first quarter, its stock turned negative in the second quarter and saw 7.9% value erosion.
Despite the worries over Trump’s protectionist trade policy, Americans continue to be optimistic as evident from 18-year high consumer confidence in August. The Consumer Confidence Index, by the Conference Board, jumped to 133.4 – the highest level since October 2000 – from the revised 127.9 in July and is much above the expected 126.6.
In the previous part of this series, we discussed Ford’s (F) sales in China in July. The company’s weaker sales in China have taken a toll on its recent earnings. Before we discuss how weaker sales in China impact Ford’s earnings, let’s take a look at its brand-wise sales in China in July.
In the previous part of this series, we discussed how China’s light vehicle sales turned negative in July and fell ~4% YoY (year-over-year). In the first seven months of 2018, China’s auto sales increased 4.3% YoY to 15.95 million units. China’s sales fell YoY in February and July.
In July 2018, Fiat Chrysler Automobiles’ (FCAU) total US sales were at 170,970 vehicles, which was about 6% higher than the company’s US sales of 161,477 vehicle units in the same month of 2017 but about 16% lower than 202,264 units sold in June 2018. Nonetheless, July was the fourth consecutive month that FCAU’s sales recovered YoY (year-over-year) in the US market after 18 consecutive months of YoY decline.
In the previous part of this series, we explored how Wall Street analysts are rating the top two US auto giants, General Motors (GM) and Ford (F). Currently, a higher percentage of Wall Street analysts favor a “buy” on GM stock, and analysts believe it has higher upside potential as compared to Ford stock. Note that General Motors (GM) stopped reporting its monthly sales data in March. The actual numbers for US auto sales in the second quarter are expected to be released in the first week of July after GM reveals its sales numbers for the quarter. In H1 2018, GM’s US sales rose 4. ...
In the last few quarters, the auto parts retail industry struggled due to weak demand. Earlier this year, Advance Auto Parts’ (AAP) management suggested that the weakness is temporary. The long-term growth shouldn’t be impacted by the weakness. In the second quarter, Advance Auto Parts’ strong results boosted investors’ confidence and raised their hopes about the auto parts retail industry’s future growth prospects. In this part, we’ll discuss what analysts think about Advance Auto Parts’ growth in the coming quarters.
In July 2018, Ford Motor Company (F) sold about 69,994 units of SUVs (sports utility vehicles), a 1.5% drop YoY (year-over-year). On the brighter side, the sales of the company’s truck segment saw strong gains of ~10.2% to 89,153 units in July 2018 from 80,886 units sold in July 2017.
Advance Auto Parts (AAP) generates its revenues by selling auto parts and accessories mainly in the United States, Puerto Rico, Canada, and the US Virgin Islands. The company provides auto parts to DIY (do-it-yourself) customers and offers professional installation services.
Last week, Fiat Chrysler Automobiles (FCAU) stock fell 4.6% to close at $16.14. In the last month, the stock has seen a 17.2% value erosion as of August 13. The stock fell ~12% on July 25 when it reported its second-quarter results.
So far, we’ve seen that Advance Auto Parts stock has outperformed peers O’Reilly Automotive (ORLY) and AutoZone (AZO) this year, as well as the broader market. With the demand for auto parts weakening, AAP’s sales are expected to be flat in the second quarter. Investors’ high expectations for its second quarter may have boosted its stock this year. Let’s look at analysts’ estimates for Advance Auto Parts’ second-quarter profit margin.
In the first quarter (ended April 21), Advance Auto Parts’ (AAP) adjusted EPS rose ~31% YoY (year-over-year) to $2.10 from $1.60, beating analysts’ estimate of $1.97. Despite the earnings beat, AAP’s weaker revenue and comp sales worried investors. In the fourth quarter of 2017, Advance Auto Parts’ adjusted EPS fell ~23% YoY.
Now let’s review Ferrari’s progress toward its 2018 guidance and its long-term business plan. During Ferrari’s second-quarter earnings conference call, its newly appointed CEO Louis Camilleri said the targets of former CEO Sergio Marchionne’s 2022 business plan were aspirational. Earlier this year, Ferrari’s management gave guidance to ship more than 9,000 car units globally, which is 7.2% higher than 8,398 units in 2017.
In the second quarter, Ferrari (RACE) reported net revenue of 9.6 million euros (or $1.05 billion). Its shipments to all its key markets rose YoY (year-over-year) in the second quarter of 2018. In 2017, Ferrari’s revenue rose 10% YoY to 3.41 billion euros (or $4.05 billion).