|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's Range||165.28 - 166.17|
|52 Week Range||138.69 - 171.48|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.10%|
So far in 2018, TM has risen ~8%. The company’s strong fiscal 2018 financial performance could be one of the drivers of this optimism.
So far in this series, we have covered analysts’ estimates for AutoZone’s third-quarter earnings, revenue, and profit margins. Analyst estimates suggest AZO could report positive year-over-year growth in its Q3 2018 earnings and revenues, but its profit margins might disappoint. Now, let’s move on by taking a look at some of the company’s key metrics and ratios before it announces fiscal Q3 2018 results on May 22.
Toyota Motor’s (TM) vehicle sales in North America fell 1.1% YoY (year-over-year) to 2.8 million units in fiscal 2018. In spite of this drop in sales volumes, the company’s revenue from the region rose to 10.6 trillion Japanese yen in fiscal 2018, ~3.3% higher than in fiscal 2017.
Traditional cap-weighted consumer discretionary exchange traded funds, such as the Consumer Discretionary Select Sector SPDR (XLY) , are usually dominated by shares of Amazon.com (AMZN). For example, XLY, the the largest exchange traded fund tracking the consumer discretionary sector, devotes almost 22% of its weight to Amazon, or more than triple the weight the ETF assigns to its second-largest holding. In other words, Amazon's price action is a big deal for many consumer discretionary ETFs.
According to the latest data compiled by Thomson Reuters, 31% of the 26 analysts covering Tesla (TSLA) have given the stock “buy” recommendations, and 38% have recommended “holds.” The remaining 31% expect Tesla stock to underperform and have suggested “sells” on its stock.
In the previous article, we discussed how Tesla’s (TSLA) solid Model 3 quarter-over-quarter production growth has largely been unable to boost investors’ confidence in 2018 so far. The company has missed its own Model 3 production expectations in the last couple of quarters, which could be one of the reasons for the pessimism among investors.
According to latest consensus data compiled by Reuters, 50% of analysts covering Ferrari (RACE) gave its stock “buy” recommendations. Another 30% of analysts recommended a “hold” while the remaining 20%, two out of the total ten analysts covering Ferrari, expect its stock to underperform the market and gave it “sell” ratings.
In the previous part of this series, we looked at Ferrari’s (RACE) higher Q1 shipments to Greater China. Last year, the company’s Mainland China shipments rose while its shipments to Hong Kong and Taiwan remained stable. Now, let’s move on and look at Ferrari’s 1Q18 shipments to its Americas segment, which includes its largest single market, the United States.
As of May 7, Fiat Chrysler Automobiles’ (FCAU) forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple was 2.3x, which was much lower than General Motors’ (GM) 7.4x and Ford’s 13.7x. These multiples were calculated on the respective companies’ estimated EBITDA for the next 12 months. About six months ago, FCAU had a much lower EV-to-EBITDA multiple of 1.9x.
Toyota Motor Corporation (TM) released its fiscal 2018 (April 1, 2017–March 31, 2018) earnings report today before the market opened. The company’s adjusted EPS (earnings per share) for the fiscal year increased 39% YoY (year-over-year) to 842 Japanese yen or ~$7.67. The company reported a 20% YoY jump in its operating profit to 2.4 trillion yen or about $21.9 billion. Toyota’s operating margin expanded to 8.2%, compared to 7.2% in the previous fiscal year.
Previously in this series, we looked at how Fiat Chrysler Automobiles (FCAU) reported a 2% decline in its global revenues in 1Q18. The company’s global shipments grew during the quarter, but currency headwinds hurt its revenues from the North America region. In this part, we’ll explore FCAU’s 1Q18 revenues from Europe and other key markets.
It's Surprising that President Trump Isn't Tweeting about ThisUS trade deficit saw largest monthly decline since 2009
In 1Q18, Tesla’s (TSLA) earnings disappointed investors with its record quarterly loss. In addition, uncertainties about the company’s high volume production plan and weaker gross profit margin continued to haunt investors in the first quarter. Now, let’s take a quick look at Wall Street analysts’ estimates for Tesla in 2Q18.
In the previous part, we discussed Tesla’s (TSLA) 1Q18 gross margin. While the Automotive segment’s gross margin improved slightly on a quarter-over-quarter basis, it fell sharply on a YoY (year-over-year) basis. Tesla’s gross margins from Model 3 were still in the negative territory in 1Q18.
Could Personal Income Continue to Rise? The BEA (Bureau of Economic Analysis), which is a part of the US Department of Commerce, releases a monthly report on US consumers’ personal income, disposable personal income, and personal consumption expenditure. The BEA’s April 30 report indicated that the US workforce’s personal income rose 0.3% in March, the same increase seen in February.
According to the data as of April 27, 2018, ~62% of the analysts covering Honda Motor Company (HMC) have given it “buy” recommendations. The remaining 38% of analysts have suggested “holds” on the stock. Interestingly, no analysts have recommended “sells” on the company at the moment.
The Bureau of Economic Analysis (or BEA) released its first estimate for 1Q18 real GDP on Friday. This reading was above the consensus estimate for a growth rate of 2% but below the 4Q17 real GDP growth rate of 2.9%. This positive surprise may have somewhat cemented the chances for three more rate hikes in 2018, and the Fed has no reason to back off from additional rate hikes this year.
Previously, we looked at how Harley-Davidson’s (HOG) product mix was positive in 1Q18 with higher shipments of touring motorcycles. However, higher raw material prices, manufacturing inefficiencies, and lower sales volumes hurt the company’s profit margins last quarter. Now, let’s move on by looking at the contribution of Harley-Davidson’s Financial Services in the company’s growth in 1Q18.
The auto industry is highly capital intensive due to the high raw material and manufacturing costs involved, which is why auto giants like Fiat Chrysler (FCAU) tend to utilize debt extensively. Let’s find out how Fiat Chrysler’s latest leverage ratios look ahead of its 1Q18 earnings release. At the end of fiscal 2017, Fiat Chrysler‘s net industrial debt stood at 2.4 billion euros, or ~$3.0 billion, which was a decrease of about 2.2 billion euros or about $2.7 billion from the end of 2016.
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.