Will CARZ ETF Gain Despite Mixed Auto Earnings?
Zacks Investment Research | Nov 16, 2021 03:07AM ET
The automobile, tires, trucks sector has come up with mixed results this reporting season. Notably, 75% of the S&P automobile companies beat on earnings and revenues. However, earnings declined 12.3% year over year and revenues were down 2.6%, as reported by the GM , leads the U.S. market share with 17.1% of the industry’s total sales in 2020. On Oct 27, General Motors reported adjusted earnings of $1.52 per share for third-quarter 2021, beating the Zacks Consensus Estimate of $1.07. Stronger-than-expected contribution from its Financial segment led to this outperformance. The bottom line, however, compares unfavorably with year-ago quarter’s earnings of $2.83 per share. General Motors reported revenues worth $26.78 billion, down from the year-ago figure of $35.48 billion. Also, the revenue figure lagged the Zacks Consensus Estimate of $31.17 billion.
General Motors had cash and cash equivalents of $17.4 billion as of Sep 30, 2021, compared with $19.9 billion at the end of 2020. The company recorded adjusted automotive free cash flow (FCF) of $4.39 billion for third-quarter 2021 comparing unfavorably with FCF of $9.12 billion in the prior-year period.
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