Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Winnebago (NYSE: WGO) and the best and worst performers in the automobile manufacturing industry.
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 manufacturing stocks we track reported a slower Q2. As a group, revenues beat analysts’ consensus estimates by 2.6%.
Luckily, automobile manufacturing stocks have performed well with share prices up 13.9% on average 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 $775.1 million, down 1.4% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations.
CEO Commentary“Our fiscal third-quarter results reflect both the diverse dynamics of our business segments and the challenges posed by an uncertain economic environment,” said Michael Happe, President and Chief Executive Officer of Winnebago Industries.
Winnebago scored the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 10.3% since reporting and currently trades at $34.50.
Is now the time to buy Winnebago? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $50.18 billion, up 5% year on year, outperforming analysts’ expectations by 7.8%. The business had an exceptional quarter with a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 10% since reporting. It currently trades at $12.
Is now the time to buy Ford? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $22.5 billion, down 11.8% year on year, falling short of analysts’ expectations by 1.1%. It was a disappointing quarter as it posted a miss of analysts’ revenue estimates, as the miss in Energy trumped the beat in Services and in-line print for Automotive and a significant miss of analysts’ operating income estimates.
Tesla delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 32.1% since the results and currently trades at $440.01.
Read our full analysis of Tesla’s results here.
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 $47.12 billion, down 1.8% year on year. This print beat analysts’ expectations by 1.3%. Taking a step back, it was a slower quarter as it produced a significant miss of analysts’ EBITDA and sales volume estimates.
The stock is up 14.8% since reporting and currently trades at $61.15.
Read our full, actionable report on General Motors here, it’s free.
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 $1.30 billion, up 12.5% year on year. This number topped analysts’ expectations by 2%. Aside from that, it was a softer quarter as it recorded full-year EBITDA guidance missing analysts’ expectations.
The stock is up 28.1% since reporting and currently trades at $15.60.
Read our full, actionable report on Rivian 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.
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