Auto stock roundup: General Motors, Ford, Honda miss earnings estimates

Last week was full of big earnings releases for the auto sector. General Motors Co. GM, Ford Motor Co. F, Honda Motor Co., Ltd. HMC, Penske Automotive Group, Inc. PAG and Lear Corp. LEA announced their financial results during the week. Among these, General Motors, Ford and Honda missed earnings and revenue estimates. Both Penske Automotive and Lear surpassed their respective earnings estimates but missed on revenues.

Recap of the Week’s Most Important Stories

1. General Motors recorded adjusted earnings of $1.4 billion or 86 cents per share in the first quarter of 2015, missing the Zacks Consensus Estimate of 97 cents. However, earnings surged from $0.5 billion or 29 cents per share in the first quarter of 2014.

The solid year-over-year improvement was driven by the recently launched full- and mid-size trucks and cost discipline. Revenues declined 4.5% year over year to $35.7 billion and missed the Zacks Consensus Estimate of $38.5 billion.

2. Ford posted earnings per share of 23 cents in the first quarter of 2015, lower than 25 cents earned in the first quarter of 2014 (all excluding special items). Moreover, earnings missed the Zacks Consensus Estimate of 25 cents. Revenues fell 5.6% to $33.9 billion, missing the Zacks Consensus Estimate of $34.20 billion.

The decline was due to product launches and the negative impact of a strong U.S. dollar on international revenues. Ford reaffirmed the pre-tax profit guidance, excluding special items, in the range of $8.5–$9.5 billion for 2015. This is substantially higher than $6.3 billion recorded in 2014.

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