From Nasdaq:

The Auto-Tires-Trucks sector’s fourth-quarter earnings have been a mix of hits and misses. Seven S&P 500 components have reported so far, with Tesla, Cummins, and BorgWarner missing estimates, while General Motors, Ford, PACCAR, and O’Reilly surpassed expectations. Reports indicate that the auto sector earnings are forecasted to drop 32.4% year over year, despite a 2.9% increase in revenues. This drop is said to be offset by various factors at play such as well-positioned auto players. Light vehicle sales improved 8.5% year over year in the fourth quarter of 2023, with 16.4 million vehicles sold. Automakers offered generous incentives to boost retail deliveries, which reached 2.56 million vehicles, helping to offset the impact of high interest rates. It’s predicted that various operational expenses, including R&D, marketing, and logistical challenges are expected to dent earnings for the quarter. Companies such as Allison Transmission Holdings, LCID, and LKQ Corp are positioned to outshine projected earnings for the fourth quarter. Allison Transmission Holdings is expected to beat its projected earnings and revenue of $1.42 per share and $755.2 million, respectively. The ESP stands at +3.73%, and the company has a Zacks Rank #2. In the case of Lucid Group, EPS stands at -0.28 and revenue at $166.7 million. ESP is at +5.36%, and Zacks Rank at #3. LKQ has an ESP of +5.40% and a Zacks Rank of #3. It’s estimated to reach $3.51 billion and 75 cents per share in earnings.



Read more: A Closer Look at 3 Auto Stocks Positioned for Q4 Earnings Beat