Auto Stocks' Earnings Scheduled For Nov 15: UFAB, FENX
Zacks Investment Research | Nov 14, 2016 06:10AM ET
The auto sector has been one of the worst performers in terms of earnings growth this reporting cycle. Auto companies’ results as of Nov 11, 2016, displayed a year-over-year decline of 8.2% in earnings and 1.1% in revenues, per our latest Earnings Preview . In comparison, S&P 500 companies that have reported so far posted a 3.9% increase in earnings on a 2.7% rise in revenues.
The decline in U.S. auto sales in August and September affected the quarterly results of many automakers. The pressure to maintain attractive incentives and deals also strained their margins. Further, expenses related to safety recalls as well as the adverse impact of foreign currency translation remain headwinds for the sector.
Meanwhile, strong sales growth in China and Europe has been the primary driving factor for the auto sector in Q3. Also, low fuel prices are driving the sales of higher margin vehicle segments, such as SUVs and light trucks.
With all these factors in mind, let’s see what awaits these two auto stocks that are slated to release their results on Nov 15.
Unique Fabricating, Inc. (NYSE:UFAB) has an Earnings ESP Filter .
Unique Fabricating missed earnings in two of the last four quarters, posted in-line results in one and beat in the other. Thus, it posted a negative average surprise of 10% in the last four quarters. The company carries a Zacks Rank #3 (Hold). You can see .
Fenix Parts, Inc. (NASDAQ:FENX) currently has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 1 cent. We note that Fenix posted an average negative surprise of 330% in the trailing four quarters. The company carries a Zacks Rank #3.
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