Automobile Manufacturers Stocks Q3 Teardown: Ford (NYSE:F) Vs The Rest

November 12, 2024 at 04:33 AM EST

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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.

Winnebago reported revenues of $720.9 million, down 6.5% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

Interestingly, the stock is up 12.1% since the results and currently trades at $65.09.

Read our full analysis of Winnebago’s results here.

Nikola (NASDAQ: NKLA)

Named after Nikola Tesla, Nikola (NASDAQ: NKLA) manufactures zero-emission vehicles, focusing on battery-electric and hydrogen fuel cell electric trucks.

Nikola reported revenues of $25.18 million, up 1,554% year on year. This print missed analysts’ expectations by 31.3%. Overall, it was a softer quarter as it also produced a miss of analysts’ EBITDA estimates.

Nikola scored the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 23.6% since reporting and currently trades at $3.23.

Read our full, actionable report on Nikola here, it’s free.

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 $25.18 billion, up 7.8% year on year. This result missed analysts’ expectations by 1%. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ operating income estimates but a narrow miss of analysts’ revenue estimates.

The stock is up 68.3% since reporting and currently trades at $359.36.

Read our full, actionable report on Tesla here, it’s free.

Market Update

As expected, the Federal Reserve cut its policy rate by 25bps (a quarter of a percent) in November 2024 after Donald Trump triumphed in the US Presidential election. This marks the central bank's second easing of monetary policy after a large 50bps rate cut two months earlier. Going forward, the markets will debate whether these rate cuts (and more potential ones in 2025) are perfect timing to support the economy or a bit too late for a macro that has already cooled too much. Adding to the degree of difficulty is a new Republican administration that could make large changes to corporate taxes and prior efforts such as the Inflation Reduction Act.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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