The Zacks Analyst Blog Highlights:General Motors, Honda Motor, Tesla Motors, Toyota Motor and Volkswagen
CHICAGO, Oct. 31, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the General Motors Co. (NYSE:GM-Free Report), Honda Motor Co., Ltd. (NYSE:HMC-Free Report), Tesla Motors, Inc. (Nasdaq:TSLA-Free Report), Toyota Motor Corp. (NYSE:TM-Free Report) and Volkswagen AG (OTC:VLKAY-Free Report).
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Here are highlights from Thursday's Analyst Blog:
Auto Stock Roundup
Earnings dominated the headlines for most auto stock in the last one-week period, with the third-quarter earnings season reaching midway. Major automakers like General Motors Co. (NYSE:GM-Free Report) and Honda Motor Co., Ltd. (NYSE:HMC-Free Report) reported their financial results.
While weak results were expected from Ford, General Motors recorded a marginal year-over-year improvement. As a result, both stocks surpassed estimates.
Ironically, Honda, which recorded a strong year-over-year improvement, failed to meet estimates and reduced its net income guidance for fiscal 2015. All three stocks recorded losses in the stock market.
Meanwhile, stocks that are set to report earnings next week fared better. Tesla Motors, Inc. (Nasdaq:TSLA-Free Report) gained 3% over the last five trading sessions as CEO Elon Musk tweeted that the company's global sales figures were a record high in September and increased 65% year over year in North America.
Further, Toyota Motor Corp. (NYSE:TM-Free Report) gained 3.2% as it reported global sales of 7.62 million for the first nine months of 2014. As expected, the Japanese automaker surpassed the sales volumes of Volkswagen AG (OTC:VLKAY-Free Report) and General Motors to remain the global leader.
Recap of the Week's Earnings Results
1. General Motors managed to beat earnings expectations despite missing revenue estimates as both earnings and revenues showed a marginal year-over-year improvement. Strong global sales and rising margins in North America and China offset the challenges in Russia and South America.
General Motors recorded adjusted earnings of 97 cents per share in the third quarter of 2014, beating the Zacks Consensus Estimate of 95 cents. Revenues grew 0.8% year over year to $39.3 billion but missed the Zacks Consensus Estimate of $39.8 billion. (Read more: GM's Strong Global Sales Drive Q3 Earnings Beat.)
2. Honda failed to meet the expectations for earnings and revenues, despite recording an improvement from the prior-year quarter. The company posted a 17.9% year-over-year rise in earnings to ¥141.8 billion ($1.30 billion) or ¥78.73 (72 cents) per share in the second quarter (ended Sep 30, 2014) of fiscal 2015. Earnings per share missed the Zacks Consensus Estimate by 4 cents.
Consolidated net sales and other operating revenues grew 4.3% to year over year ¥3 trillion ($27.5 billion). However, the figure fell short of the Zacks Consensus Estimate of $31.6 billion. The year-over-year increase can be attributed to higher revenues from the automobile and motorcycle businesses as well as favorable foreign currency translation.
For fiscal 2015, Honda expects revenues to increase 7.7% and operating income to rise 2.6%. However, net income is projected to decrease 1.6%. (Read more: Honda Q2 Earnings, Revenues Miss Estimates but Up Y/Y.)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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