Auto Stock Roundup: Recalls Continue, Ford Partners Mahindra, AutoZone Reports Q4 Results
Zacks Investment Research | Sep 21, 2017 02:20AM ET
Last week saw usual readiness on the part of several automakers to move toward electric vehicles. Ford Motor Company (NYSE:F) announced that it has collaborated with Mahindra Group, an Indian automotive manufacturing company, to work on areas such as mobility programs, electrifications, connected vehicle projects and product development, among other aspects.
Even Autoliv, Inc.’s (NYSE:ALV) plans of splitting into two separate publicly traded companies — Passive Safety and Electronics — gives an indication that auto companies are seriously mulling over producing electric vehicles (EVs).
Amid this, a couple of companies came up with their earnings results. Both AutoZone, Inc. (NYSE:AZO) and Copart, Inc. (NASDAQ:CPRT) reported better-than-expected results.
In this otherwise normal week, a few automakers were once again embroiled in recall issues. The cases of recalls in China, the largest car market in the world, can prove to be serious for these automakers. At a time when these automakers are investing huge money on electric vehicles, these recalls are further putting strains on their exchequers.
(Read the previous roundup here: Recalls Plague Automakers: General Motors, Ford in Focus ).
5. Copart reported adjusted earnings per share of 35 cents in fourth-quarter fiscal 2017 (ended Jul 31, 2017) and beat the Zacks Consensus Estimate of 31 cents. The figure shows a steep rise of 20.7% from 29 cents recorded in the year-ago quarter.
Net income was $70.3 million, reflecting a decrease of 16.4% or $13.8 million from the fourth quarter of fiscal 2016.
Copart’s revenues rose 13.8% to $378.6 million from the year-ago quarter and surpassed the Zacks Consensus Estimate of $355.5 million. Service revenues went up 16.3% to $336.8 million, while revenues from vehicle sales declined 3.2% to $41.8 million.
Gross margin improved 18.4% to $167.5 million from $141.5 million a year ago. Operating expenses also increased to $267.8 million from $226.5 million in the year-ago quarter.
Operating income shot up to $110.8 million from $106.2 million reported a year ago (read more: Copart Q4 Earnings & Revenues Beat Estimates, Up Y/Y ).
Performance
Last week, save Advance Auto Parts (NYSE:AAP) and AutoZone, all the stocks listed below moved north.
In the last six months, Tesla, Inc. (NASDAQ:TSLA) gained the most, while Advance Auto Parts registered the sharpest decline.
| Company | Last Week | Last 6 Months |
| GM | 1.8% | 13.1% |
| F | 0.8% | -0.5% |
| TSLA | 2.1% | 46.6% |
| TM | 3.2% | 8.6% |
| HMC | 1.5% | -3.2% |
| HOG | 0.8% | -20.1% |
| AAP | -5.3% | -37.3% |
| AZO | -4.5% | -25% |
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What’s Next in the Auto Space?
Stay tuned for the usual news updates in the space.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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