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 Winnebago (NYSE: WGO).
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.
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 exceeded analysts’ expectations by 0.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
“Winnebago Industries continues to demonstrate solid performance in our strategic markets, leveraging product differentiation and sharper affordability options to maintain healthy market share in our core premium and mid-range RV segments,” said President and Chief Executive Officer Michael Happe.
Winnebago delivered the slowest revenue growth of the whole group. The stock is down 7% since reporting and currently trades at $32.33.
Is now the time to buy Winnebago? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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, outperforming analysts’ expectations by 4.3%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $10.27.
Is now the time to buy Ford? Access our full analysis of the earnings results 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 $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.
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. This result topped analysts’ expectations by 24.3%. It was an incredible quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Rivian achieved the biggest analyst estimates beat among its peers. The stock is down 5.7% since reporting and currently trades at $12.72.
Read our full, actionable report on Rivian here, it’s free.
Lucid (NASDAQ: LCID)
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 print missed analysts’ expectations by 0.9%. More broadly, it was actually a strong quarter as it produced a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ adjusted operating income estimates.
Lucid scored the fastest revenue growth among its peers. The stock is down 3.2% since reporting and currently trades at $2.25.
Read our full, actionable report on Lucid here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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