As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the automobile manufacturers industry, including Rivian (NASDAQ:RIVN) and its peers.
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 5 automobile manufacturers stocks we track reported a decent Q2. As a group, revenues beat analysts’ consensus estimates by 6.1%.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility, and automobile manufacturers stocks have had a rough stretch. On average, share prices are down 6.8% since the latest earnings results.
Rivian (NASDAQ:RIVN) The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric adventure vehicles and commercial delivery vans.
Rivian reported revenues of $1.16 billion, up 3.3% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ volume estimates.
Unsurprisingly, the stock is down 4.6% since reporting and currently trades at $14.12.
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Best Q2: 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 $47.97 billion, up 7.2% year on year, outperforming analysts’ expectations by 5.9%. It was a stunning quarter for the company with an impressive beat of analysts’ revenue and EPS estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $49.51.
Weakest Q2: 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 $786 million, down 12.7% year on year, falling short of analysts’ expectations by 1.5%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
Winnebago had the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 5.1% since the results and currently trades at $59.57.
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 $47.81 billion, up 6.3% year on year, surpassing analysts’ expectations by 6.5%. Revenue aside, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
The stock is down 18.6% since reporting and currently trades at $11.12.
Nikola (NASDAQ:NKLA) Seeking to transform the heavy-duty transportation industry, Nikola (NASDAQ:NKLA) develops and manufactures zero-emission trucks.
Nikola reported revenues of $31.32 million, up 104% year on year, surpassing analysts’ expectations by 19.6%. Taking a step back, it was a solid quarter for the company with a decent beat of analysts’ volume estimates.
Nikola achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 15.6% since reporting and currently trades at $6.58.
This content was originally published on Stock Story
