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As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at automobile manufacturers stocks, starting with Ford (NYSE:F).
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 7 automobile manufacturers stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 3.4%.
Luckily, automobile manufacturers stocks have performed well with share prices up 12.8% on average 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 $46.2 billion, up 5.5% year on year. This print exceeded analysts’ expectations by 9.1%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ operating margin estimates.
Unsurprisingly, the stock is down 1.5% since reporting and currently trades at $11.20.
Is now the time to buy Ford? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $48.76 billion, up 10.5% year on year, outperforming analysts’ expectations by 9.9%. The business had a very strong quarter with an impressive beat of analysts’ operating margin and Wholesale revenue estimates.
General Motors achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 17.1% since reporting. It currently trades at $57.31.
Is now the time to buy General Motors? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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.