U.S. auto sales data for June and the first half of 2015 grew year over year. Sales on a seasonally adjusted annualized rate (“SAAR”) basis also increased year over year but declined sequentially. Meanwhile, Winnebago Industries, Inc. WGO reported better-than-expected earnings for the third quarter of fiscal 2015.
However, several developments leaned on the negative side. Honda Motor Co., Ltd. HMC restated its financial statements for the fourth quarter and fiscal year ended Mar 31, 2015, to reflect the increase in its estimate for product warranty expenses. General Motors Co. GM is suffering from the devaluation of the Venezuelan bolivar, due to which it is expected to incur a pretax charge of $600 million in second-quarter 2015. Meanwhile, Toyota Motor Corporation TM announced the recall of another 2.86 million vehicles globally to replace faulty Takata airbags.
(Read last to last week’s recap here: Auto Stock Roundup for Jun 25, 2015)
Recap of the Week’s Most Important Stories
1. U.S. light-vehicle sales increased 3.9% year over year to 1.48 million units in Jun 2015. Sales increased 4.4% year over year to 8.52 million units in the first half of 2015. Sales on a SAAR declined to 17.16 million units in Jun 2015 from 17.78 million in May 2015. However, the SAAR improved from 16.91 million in Jun 2014.
2. Honda has amended its financial statements for the fourth quarter and fiscal year ended Mar 31, 2015, to reflect the recently announced increase in its estimate for product warranty expenses. The company’s earnings are now pegged at ¥68 billion ($567 million) or ¥37.77 (31 cents) per share for the fourth quarter of fiscal 2015, down significantly from ¥170.5 billion ($1.42 billion) or ¥94.61 (79 cents) per share in the year-ago quarter. Honda’s consolidated earnings per share projection for fiscal 2015 were modified to ¥273.54 ($2.28), down from ¥318.54 ($2.65) a year ago (read more: Honda Amends Financials to Reflect Higher Warranty Expenses).
3. Winnebago recorded earnings of 44 cents per share in the third quarter of fiscal 2015 (ended May 30, 2015), up from 42 cents earned in the prior-year quarter and a penny ahead of the Zacks Consensus Estimate. Net income inched up to $11.5 million from $11.4 million in the year-ago quarter. Revenues for the third quarter advanced 7.6% to $266.5 million from $247.7 million in the year-ago quarter. Revenues were almost in line with the Zacks Consensus Estimate of $267 million (read more: Winnebago's Q3 Earnings Top Estimates; Shares Rise).
4. General Motors is expected to incur a pretax charge of $600 million in second-quarter 2015 due to the impact of devaluation of the Venezuelan bolivar. Venezuela is facing challenges from low oil prices and currency controls which led to a dollar deficiency in the South American nation. General Motors is hopeful that the charge will not have an adverse effect on the company’s operating income (read more: GM to Incur $600M Charge Due to Bolivar Devaluation).
5. Toyota is recalling another 2.86 million vehicles globally to replace faulty Takata airbags. Of these, 1.729 million vehicles are in Europe, 360,000 are in Japan and 190,000 are in China. The vehicles under the recall cover 24 models produced between Apr 2003 and Dec 2008 (read more: Toyota Adds 2.86M Vehicles Globally to Takata Airbag Recall).
Performance
Most auto stocks recorded losses over the last week. Tesla Motors, Inc. TSLA was the only exception with a 1.5% gain. Meanwhile, General Motors recorded the maximum loss over the week.
The performances over the last six-months were more positive. Tesla continues to hold on to the position of the biggest gainer. Further, Harley-Davidson, Inc. HOG is leading the list of losses once again.
|
Company |
Last 1-Week Period |
Last 6 Months |
|
GM |
-6.0% |
-5.2% |
|
F |
-3.3% |
-2.4% |
|
TSLA |
+1.5% |
+22.7% |
|
TM |
-1.3% |
+6.3% |
|
HMC |
-2.2% |
+7.7% |
|
HOG |
-3.0% |
-14.7% |
|
AAP |
-0.5% |
+2.6% |
|
AZO |
-1.0% |
+9.1% |
What’s Next in the Auto Space?
A few automakers will release their China and Europe sales figures for June and first half of 2015, in the coming days. Tesla will report its vehicle delivery data for the second quarter of 2015 in the coming days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment