The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how automobile manufacturing stocks fared in Q1, starting with General Motors (NYSE:GM).
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%.
Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 2.7%. It was a decent quarter for the company with a narrow beat of analysts’ adjusted operating income estimates.
General Motors Total Revenue
Interestingly, the stock is up 1.2% since reporting and currently trades at $47.78.
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 a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Rivian Total Revenue
Rivian pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.5% since reporting. It currently trades at $14.22.
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. Tesla delivered fewer vehicles than forecasted, its revenue in all three segments (Services, Automotive, and Energy) missed, and its EPS fell short of Wall Street’s estimates.
Tesla delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 25.7% since the results and currently trades at $299.30.
Founded by a former Tesla Vice President, Lucid Group (NASDAQ:LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.
Lucid reported revenues of $235 million, up 36.1% year on year. This number came in 0.9% below analysts' expectations. In spite of that, it was a strong quarter as it put up a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ adjusted operating income estimates.
Lucid achieved the fastest revenue growth among its peers. The stock is up 8.2% since reporting and currently trades at $2.51.
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 result beat analysts’ expectations by 0.6%. It was a strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
Winnebago had the slowest revenue growth among its peers. The stock is down 2.1% since reporting and currently trades at $34.02.
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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