The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Nikola (NASDAQ:NKLA) and the rest of the automobile manufacturers stocks fared in Q2.
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%.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and automobile manufacturers stocks have had a rough stretch. On average, share prices are down 8.3% since the latest earnings results.
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. This print exceeded analysts’ expectations by 19.6%. Overall, it was a good quarter for the company with a decent beat of analysts’ volume estimates but a miss of analysts’ earnings estimates.
"In the last three quarters of serial production, we have demonstrated that Nikola is the offtake. We are the catalyst to disrupt Class 8 trucking to make zero-emission a reality," said Steve Girsky, President and CEO of Nikola.
Nikola achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 7.8% since reporting and currently trades at $45.70.
Is now the time to buy Nikola? Access our full analysis of the earnings results here, it’s free.
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’ Wholesale revenue estimates and optimistic earnings guidance for the full year.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.8% since reporting. It currently trades at $45.70.
Is now the time to buy General Motors? Access our full analysis of the earnings results here, it’s free.
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 posted the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 2.3% since the results and currently trades at $58.01.
Read our full analysis of Winnebago’s results here.
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%. Taking a step back, it was a slower quarter for the company with a miss of analysts’ earnings and volume estimates.
The stock is down 21.5% since reporting and currently trades at $10.72.
Read our full, actionable report on Ford here, it’s free.
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, in line with analysts’ expectations. More broadly, it was a decent quarter for the company with an impressive beat of analysts’ volume estimates but a miss of analysts’ earnings estimates.
The stock is down 9.2% since reporting and currently trades at $13.44.
Read our full, actionable report on Rivian here, it’s free.
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