Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Ford (NYSE: F) and the best and worst performers in the automobile manufacturing industry.
Much capital investment and technical know-how are needed to manufacture functional, safe, and aesthetically pleasing automobiles for the mass market. Barriers to entry are therefore high, and auto manufacturers with economies of scale can boast strong economic moats. However, this doesn’t insulate them from new entrants, as electric vehicles (EVs) have entered the market and are upending it. This has forced established manufacturers to not only contend with emerging EV-first competitors but also decide how much they want to invest in these disruptive technologies, which will likely cannibalize their legacy offerings.
The 6 automobile manufacturing stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.8%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Ford (NYSE: F)
Established to make automobiles accessible to a broader segment of the population, Ford (NYSE: F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.
Ford reported revenues of $40.66 billion, down 5% year on year. This print exceeded analysts’ expectations by 4.3%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $10.27.
Is now the time to buy Ford? Access our full analysis of the earnings results here, it’s free.
Best Q1: Rivian (NASDAQ: RIVN)
The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ: RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.
Rivian reported revenues of $1.24 billion, up 3% year on year, outperforming analysts’ expectations by 24.3%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Rivian delivered the biggest analyst estimates beat among its peers. The stock is down 5.7% since reporting. It currently trades at $12.72.
Is now the time to buy Rivian? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: Tesla (NASDAQ: TSLA)
Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ: TSLA) is an electric vehicle company accelerating the world’s transition to sustainable energy.
Tesla reported revenues of $19.34 billion, down 9.2% year on year, falling short of analysts’ expectations by 8.1%. It was a disappointing quarter as it posted a miss of analysts’ revenue estimates and a significant miss of analysts’ operating income estimates.
Tesla delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 15.9% since the results and currently trades at $276.10.
Read our full analysis of Tesla’s results here.
General Motors (NYSE: GM)
Founded in 1908 by William C. Durant, General Motors (NYSE: GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.
General Motors reported revenues of $44.02 billion, up 2.3% year on year. This result beat analysts’ expectations by 2.7%. Aside from that, it was a mixed quarter as it also recorded a narrow beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EBITDA estimates.
The stock is down 3.6% since reporting and currently trades at $45.50.
Read our full, actionable report on General Motors here, it’s free.
Winnebago (NYSE: WGO)
Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE: WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.
Winnebago reported revenues of $620.2 million, down 11.9% year on year. This print surpassed analysts’ expectations by 0.6%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
Winnebago had the slowest revenue growth among its peers. The stock is down 7% since reporting and currently trades at $32.33.
Read our full, actionable report on Winnebago here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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