Last week, China Association of Automobile Manufacturers (CAAM) released vehicle sales data for October. Total car sales were 2.5 million units, up 6.9% year over year. Passenger car sales were up 10.7% to 2.23 million units, while commercial vehicles were down 16.2% to 273,000 units. Last month, sales of new energy vehicles (NEVs) totaled 714,000 units, jumping 81.7% year over year. Sales of NEVs totaled 5.28 million units during January-October 2022, rocketing 105.4% from the corresponding period of 2021.
On the news front, Japan-based auto giants Honda HMC and Nissan NSANY came out with their quarterly results, wherein both automakers missed earnings estimates. Auto equipment provider Westport Fuel WPRT also released third-quarter 2022 results, with earnings in line with the Zacks Consensus Estimate but sales lagging the same. Meanwhile, Ryder System R — a reputed player in supply chain, fleet management and transportation solutions— announced a collaboration with Aurora Innovation—a major autonomous vehicle company— to pilot maintenance of autonomous trucks. Leading engine maker, Cummins CMI also made the headlines with the attainment of a minority stake in Exergy Energy.
While R currently carries a Zacks Rank #2 (Buy), HMC, NSANY, WPRT and CMI carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Honda reported earnings of 80 cents per share for second-quarter fiscal 2023, lagging the Zacks Consensus Estimate of 91 cents. The bottom line also fell from the year-ago profit of 88 cents per share. Quarterly revenues totaled $30,824.4 million, topping the Zacks Consensus Estimate of $29,653.6 million. The top line, however, inched down from $30,925.2 million recorded in the year-ago period.
Honda projects fiscal 2023 sales volumes from Motorcycle, Automobile and Power Products segments to be 18.43 million units, 4.1 million units and 5.66 million units in fiscal 2023, compared with the prior estimates of 18.56 million units, 4.2 million units and 5.66 million units, respectively. For fiscal 2023, Honda forecasts revenues of ¥17.4 trillion, up from the prior guidance of ¥16.75 trillion. The fiscal 2023 sales view implies a 19.5% rise year over year. Operating profit is envisioned at ¥870 billion, up from ¥830 billion guided earlier. Pretax profit is forecast at ¥1,080 billion, up from the previous forecast of ¥1,040 billion.
Nissan reported earnings of 15 cents per share for second-quarter fiscal 2022, lagging the Zacks Consensus Estimate of 20 cents. The bottom line also fell from the year-ago profit of 27 cents per share. Quarterly revenues totaled $18,288 million, falling short of the Zacks Consensus Estimate of $18,291 million. The top line, however, increased from $17,612 million recorded in the year-ago period.
Nissan revised its fiscal 2022 (ending Mar 31, 2023) forecasts. The auto biggie expects net sales of ¥10.9 trillion, up from the prior estimate of ¥10 trillion. The projected revenues imply an uptick from ¥8.4 trillion generated in fiscal 2021. Operating profit is now projected at ¥360 billion, higher than ¥250 billion guided earlier. The projected operating profit also indicates a year-over-year surge of 45.5% year over year. Net income per share is projected at ¥39.59, compared with the prior estimate of ¥38.82 but implying a decline from ¥55.07 recorded in fiscal 2021.
Westport incurred a loss of 7 cents per share in third-quarter 2022, in line with the Zacks Consensus Estimate but wider than a loss of 3 cents posted in the year-ago quarter. Westport registered consolidated revenues of $71.2 million in the quarter, missing the Zacks Consensus Estimate of $76 million. The top line also declined 4% from the year-ago level of $74.3 million.
Westport generated an adjusted EBITDA of negative $4.5 million in the third quarter, deteriorating from negative $1.4 million in the year-ago period. The company had cash and cash equivalents of $86.5 million as of Sep 30, 2022, down from $124.9 million at the end of 2021. Long-term debt decreased to $32.8 million at the end of third-quarter 2022 from $45.1 million on Dec 31, 2021. Net cash used in operating activities was $8.59 million during the quarter under review.
Cummins announced that it has obtained a minority stake in Exergy Energy.The partnership will enable the installation of Cummins power system solutions such as generator sets, energy storage systems and switching equipment at the customer location to provide power to the entire operation at the time of grid outages or times of peak usage. A big advantage of the collaboration is that it does not entail any upfront capital investment by the customer. Exergy Energy’s avant-garde software has the potential to track the grid such that during peak usage periods, it automatically shifts the load to the backup power system. This avoids an outage or peak demand charges.
Cummins is driven to help its customers meet their sustainability goals. Many organizations struggle to find solutions to grid power problems, hindered by the upfront capital expense of a generator set and power system components, coupled with the complexity of participating in grid services. Through Exergy Energy, Cummins is contributing to making the process simple by removing the cost barriers of installing and operating a backup generator owing to an economized framework.
Ryder collaborated with Aurora to pilot on-site fleet maintenance. With Ryder technicians embedded at Aurora’s terminal in South Dallas, the goal is to support the current pilot operations and prepare for commercial operations at scale.As part of the pilot project, Ryder will bring experienced technicians to work in unison with Aurora’s at the latter’s South Dallas terminal. Together, they will ensure holistic conservation and maintenance work. Responsibilities will include the upkeep of Aurora’s fleet of autonomous Class 8 tractors, along with inspections and repairs. Inspection and maintenance of trailers for pilot hauls and compliance with DOT standards, and collaboration with Aurora to reduce downtime and improve maintenance operations will be the other aspects.
The partnership will further bolster Ryder’s vision of expediting the commercialization of autonomous technology and the deployment of autonomous trucks across the United States. The collaboration will leverage Ryder’s nearly 90 years of fleet maintenance experience that will strengthen Aurora’s autonomous trucks and add value to its commercial product, Aurora Horizon. Aurora also anticipates significant on-site maintenance in its terminals as it increases pilot customer hauls to 100 per week, expected at the end of 2023.
Industry watchers will keep a tab on October passenger vehicle registrations to be released by the European Automobile Manufacturers' Association.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ryder System, Inc. (R) : Free Stock Analysis Report
Cummins Inc. (CMI) : Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
Nissan Motor Co. (NSANY) : Free Stock Analysis Report
Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Related Quotes
Sempra's (SRE) subsidiary, Sempra Infrastructure, clinches a head of agreement with Williams involving the offtake of LNG and the development of project pipelines.
London-based activist hedge fund TCI Fund Management has called out Google parent Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) to cut costs substantially, claiming the company would be more efficient with fewer employees. The activist investor also called to reduce losses in long-term bets such as the self-driving car unit Waymo. Mr. Hohn said Alphabet should make the suggested changes as soon as possible, pointing to recent decisions by other big technology companies. Facebook parent Meta Platfo
Luna Foundation Guard (LFG), the entity behind the collapsed Terra ecosystem, spent $2.8 billion of crypto trying to defend the peg of algorithmic stablecoin TerraUSD (UST) in May, according to a third-party audit by consultancy firm JS Held. "The Hash" hosts discuss the key findings.
You don't hear Elon Musk and Eli Lilly and company (NYSE: LLY) mentioned in the same sentence very often. Musk has been in the news quite a bit lately after his acquisition of Twitter. Among the victims was none other than Eli Lilly.
The search giant isn’t under the same pressure as Meta, but a slumping ad market might force changes.
In this piece, we will take a look at the 12 biggest iron ore producers and mines in the world. For more companies and mines, head on over to 5 Biggest Iron Ore Producers and Mines in the World. Iron and its derivative steel are the backbones of the modern world. They are essential inputs […]
The early signing period has shaken things up for the best college basketball teams in the country.
Recently, Zacks.com users have been paying close attention to NextEra (NEE). This makes it worthwhile to examine what the stock has in store.
Here is how Harley-Davidson (HOG) and Paccar (PCAR) have performed compared to their sector so far this year.
Lexicon Pharmaceuticals Inc (NASDAQ: LXRX) announced that full results from the RELIEF-DPN-1 trial of its investigational drug LX9211 were presented at the 16th Annual Pain Therapeutics Summit. The full data comes from the entire 11-week evaluation period, including a 5-week placebo run-off following the initial 6-week treatment period. The data exhibited consistent and statistically significant treatment-period benefits in measures of particular importance in painful diabetic neuropathy (also k
Yahoo Finance tech editor Dan Howley breaks down Nvidia's third-quarter earnings results.
Nvidia Corp.'s financial results had a bit of a surprise for investors, and not on the good side — product inventories doubled to a record high as the chip company gears up for a potentially iffy holiday season.
The Oracle of Omaha knows how to beat inflation. So ride his coattails.
John Linehan, who manages $29 billion for T. Rowe Price, is looking to financials, energy and utilities to power the market as interest rates remain high.
Shares of Cisco jumped after the company posted an impressive first-quarter earnings beat.
The prospect of further rate hikes sent each of these companies into the red, as none made money today, and they may have to raise even more in the future.
Star Bulk Carriers (SBLK) delivered earnings and revenue surprises of -6.34% and 7.26%, respectively, for the quarter ended September 2022. Do the numbers hold clues to what lies ahead for the stock?
Nio expected a sharp increase in production and deliveries in the fourth quarter, but there are signs that plan could falter.
Cryptocurrency brokerages Gemini and Genesis are reassuring people that their operations are still solvent after the massive collapse of exchange FTX. The insolvency of FTX could result in more companies in the industry facing severe liquidity issues, including crypto exchanges and lenders. "We are working with the Genesis team to help customers redeem their funds from the Earn program as quickly as possible," Gemini said in a tweet.
Cisco's solid October quarter results are a positive signal for the enterprise infrastructure market.