Auto Stock Roundup: MGA, AAP, WPRT, MTOR Beat On Earnings, SUP Misses, GM In Focus
Zacks Investment Research | Nov 16, 2017 05:41AM ET
Last week saw quite a few auto companies reporting their quarterly numbers. While Magna International Inc. (NYSE:MGA) , Advance Auto Parts Inc. (NYSE:AAP) , Westport Fuel Systems Inc. (NASDAQ:WPRT) and Meritor, Inc. (NYSE:MTOR) delivered an earnings beat, Superior Industries International Inc. (NYSE:SUP) came up with lower-than-expected earnings numbers.
Per a Reuters report, General Motors Co. (NYSE:GM) this week announced that it will launch less a new range of electric vehicles (EVs) by 2021. This is a clear indication of the auto giant making an attempt to take on Tesla, Inc. (NASDAQ:TSLA) which is facing problems with the mass production of its comparatively affordable Model 3.
On a different note, this year, prices of used vehicles have not declined as much as expected. Although this is not good news for the customers, it has brought cheer among the automakers and dealers. In fact, low prices of used vehicles compel automakers to offer higher discounts to customers on new vehicles. However, as a result of lower-than-anticipated price decline of used cars, sale of new cars will not be affected much as was anticipated.
(Read the previous roundup here: .
5. Meritor, Inc. registered a 82.3% year-over-year increase in adjusted earnings of 62 cents per share in the fourth quarter of 2017 (ended Sep 30, 2017), comfortably surpassing the Zacks Consensus Estimate of 47 cents.
Adjusted income from continuing operations was $56 million compared with $30 million in the fourth quarter of 2016.
Revenues increased 26.7% year over year to $922 million. The top line also surpassed the Zacks Consensus Estimate of $837 million.
Meritor’s adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased to $98 million from $74 million in the year-ago quarter. Adjusted EBITDA margin was 10.6% compared with 10.2% in the year-ago quarter. Adjusted EBITDA and EBITDA margin increased on a year-over-year basis, driven by high revenue growth.
Currently, Meritor has a Zacks Rank #1.
Performance
| Company | Last Week | Last 6 Months |
| GM | 1.8% | 32.2% |
| F | -0.5% | 11.5% |
| TSLA | 2.3% | 1.7% |
| TM | -3.4% | 16.9% |
| HMC | -4.4% | 17% |
| HOG | 4.3% | -10.4% |
| AAP | 15.3% | -36.7% |
| AZO | 2.2% | -8.2% |
Last week, the steepest increase was registered by Advance Auto Parts and the sharpest decline was witnessed by Honda Motor Co.
Get The News You Want
In the last six months, the steepest increase and the sharpest decline were witnessed by General Motors and Advance Auto Parts, respectively.
What’s Next in the Auto Space?
Earnings for the quarter ending Sep 30, 2017 is nearing its end. Watch out for the usual news releases of other auto companies over the next week.
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