Tuesday, May 30Welcome

AZO & THO quarterly results, BWA spin-off plan, etc.

Last week, the China Passenger Car Association (CPCA) released car sales data for November. Auto sales in China totaled 1.67 million last month, down 9.5% from a year earlier, according to the agency. It was the first drop since May.

Frontline News, Auto Parts Retailer Auto Zone Co., Ltd. AZO and RV (RV) Manufacturers Toll Industries THO reported quarterly results and both companies managed to turn a profit.automotive equipment providers BorgWarner Co., Ltd. BWA has received a lot of attention for its plans to split its Fuel Systems and Aftermarket business segments into a new company to better deliver on the electrification goals highlighted in its Charging Forward strategy.Meanwhile, car dealers Lithia Motors LAD continued to make acquisitions, buying a Ferrari dealership in Denver.trucking giant packer PCAR also made headlines with its investor-friendly move.

Last week’s top stories

auto zone reported first-quarter 2023 earnings per share of $27.45, up 6.8% from $25.69 a year earlier. Ultimate earnings beat the Zachs consensus estimate of $25.15 per share, with higher-than-expected comp growth. Net sales also increased by 8.6% to his $3,985.1 million. The top line surpassed the Zachs consensus estimate of $3.836 billion. Domestic same-store sales (at least for his stores that have been open for more than a year) increased by 5.6%, beating his Zacks Consensus estimate of 3.37%.

In the quarter ended November 19, AutoZone opened 28 stores in the United States, 3 stores in Mexico and 4 stores in Brazil. We ended the quarter with 6,196 stores in the US, 706 stores in Mexico and 76 stores in Brazil. As of November 19, the total number of stores was 6,978. AutoZone’s cash and cash equivalents were $269.8 million as of Nov. 19, plummeting from $961.1 million on Nov. 20, 2021. Total debt reached $6,328.3 million as of November 19 and is growing. Starting at $5,271.3 million as of November 20, 2021.

AutoZone currently has Zacks Rank #3 (hold).you can see See the full list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Thor reported adjusted earnings of $2.53 per share for the first quarter of fiscal 2023 ending October 31, 2022. This beat his $2.09 Zachs consensus forecast.This marked 11th Thor’s straight earnings outperformed. Earnings, however, were down from his $4.34 per share earnings the year before. The company posted his $3.181 billion in revenue for the quarter, missing out on the Zacks Consensus estimate of his $3.117 billion. His top line also fell 21.5% year-over-year. In the first quarter of the fiscal year, the company raised its quarterly payments by 5% to mark 13.th Dividend increased for one year in a row.

As of October 31, 2022, Thor had cash and cash equivalents of $291.7 million and long-term debt of $1,714.6 million. Thor expects net sales of $12.5 billion in fiscal 2023 from his $11.5 billion, down from his $16.31 billion recorded in fiscal 2022. means that Earnings per share he is expected to be between $7.40 and $8.70, suggesting a sharp contraction from his $20.59 for the 2022 fiscal year.

Borg Warner announced plans to spin off its fuel systems and aftermarket segments into another publicly traded company known as NewCo, tax-free. Upon completion of the proposed split, BorgWarner will consist of the e-Propulsion & Drivetrain and Air Management segments. NewCo will consist of the company’s current fuel systems and aftermarket segments. The transaction is expected to close in the second half of 2023, subject to the satisfaction of customary conditions and other regulatory approvals.

The intended separation will optimize BWA’s combustion portfolio and accelerate its electrification game, while NewCo will pursue growth opportunities in alternative fuels such as hydrogen and aftermarket. The spin-off will allow BorgWarner to focus on the set goals highlighted in its Charging Forward strategy. The company estimates it is on track with organic bookings and acquisitions to date to realize more than 22% of its revenue from EVs by 2025 after executing the intended transaction. increase.

litia Acquired a Ferrari dealership in Denver and strengthened its footprint in Colorado. This is the company’s first Ferrari store purchase. Besides Ferrari, we also sell Bentley and other luxury brands. Lithia expects the dealer to generate about $75 million in annual revenue, and his total expected annual revenue for his LAD earned in 2022 will bring him over $3.3 billion. The acquisition is part of LAD’s nationwide network expansion initiative under its 2025 plan, which targets $50 billion in revenue and his EPS in the $55-$65 range.

The strategic acquisition of Lithia is helping the auto retailer grow market share and strengthen its portfolio. The series of acquisitions will bring Lithia’s total projected annual revenue for 2021 to his $7 billion, keeping ahead of schedule in his five-year plan that rolled out in July 2020. I’m here. Projected annual gross revenue earned in 2022 reaches $3.3 billion.

packer gave investors reason to cheer by increasing its dividend payout. The company declared a 50% stock dividend on him, allowing investors to receive one additional share of him for every two of his shares they held. The new shares will be issued on February 7, 2023 to his shareholders of record as of January 17, 2023, but PACCAR will pay a quarterly dividend of 25 cents on each of the newly split shares and 3 It will be paid to shareholders on the 8th of the month. This is the record as of February 14th.

Specifically, PACCAR will pay shareholders of record as of December 16, 2022 an additional cash dividend of $2.80 per share due on January 5, 2023. This represents an increase of 86.6% from the additional cash dividend of $1.50 per share. PACCAR has paid dividends annually since 1941. PCAR continues to drive shareholder value with strong cash flow generated by strong growth in its trucking and aftermarket businesses. People looking for regular income from stocks are most likely to choose companies with a track record of consistent incremental dividend payments.

price performance ratio

The following table shows price changes for some major auto players over the past week and six months.

Zacks Investment Research

Zacks Investment Research

Image Source: Sachs Investment Research

What’s next for autospace?

Industry watchers will be on the lookout for November’s passenger car registration, soon to be announced by the European Automobile Manufacturers Association. The China Automobile Manufacturers Association will also release Chinese car sales data in the coming days. Investors are also awaiting the quarterly results of one of his leading RV manufacturers, Winnebago Industries.

Want the latest recommendations from Zacks Investment Research? Download today the 7 Best Stocks of the Next 30 Days.Click to get this free report

Thor Industries, Inc. (THO) : Free Inventory Analysis Report

BorgWarner Inc. (BWA) : Free Inventory Analysis Report

PACCAR Inc. (PCAR) : Free Inventory Analysis Report

AutoZone, Inc. (AZO) : Free Inventory Analysis Report

Lithia Motors, Inc. (LAD): Free Stock Analysis Report

Click here to read this article on Zacks.com.

Zacks Investment Research

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *