Auto Stock Roundup: Toyota Honda Scales Up EV Activities, NAV, WGO Report Results

Last week saw a number of activities by global automakers on the electric vehicle (EV) front. Toyota Motor Corporation (NYSE:TM) , the biggest Japanese automaker, shared its plans of popularizing electrified vehicles for 2020-2030. German auto giant, Volkswagen (DE:VOWG_p) AG’s (OTC:VLKAY) , electric vehicle infrastructure unit, Electrify America, shared plans of installing 2,800 charging stations for EVs.

Importantly, Honda Motor Co., Ltd. (NYSE:HMC) , which had so far abstained from entering the EV race, has finally changed its stance. The company has set big plans to transition to electric vehicles by 2030. The company is set to unveil a new five-passenger gas-electric hybrid sedan, Insight, at the Detroit auto show next month.

Apart from these activities, Navistar International Corporation (NYSE:NAV) and Winnebago Industries, Inc. (NYSE:WGO) reported earnings results. Both the companies beat the Zacks Consensus Estimate.

(Read the previous roundup here: Auto Stock Roundup for Dec 14, 2017)

Recap of the Week’s Most Important Stories

1. Toyota has shared its plans of popularizing electrified vehicles for 2020-2030. This is in line with the company’s developmental strategy to launch hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs).

Per its Toyota Environmental Challenge 2050, launched in October 2015, the company aims at lessening the harmful impact of production and driving vehicles, as well as promoting usage of sustainable fuel options. Toyota aims to curb CO2 emissions of average new vehicles by 90% from the levels registered in 2010.

The company has plans of wheeling out 10 BEVs worldwide by early 2020s, first in China, followed by a series of gradual introduction in the Japan, India, the United States and Europe markets (read more: Toyota Puts Decade-Long Plan for Electric Vehicles on Paper).

Currently Toyota has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

2. Per Reuters, Volkswagen electric vehicle infrastructure unit, Electrify America, announced plans of installing 2,800 charging stations for electric vehicles (EVs). These stations will be set up across 17 major cities of the United States by June 2019. The charging stations will be located at approximately 500 sites. Almost 75% of this will be situated at workplaces, while the rest will be in the residential areas.

As part of the court settlement against its DieselGate scandal, Volkswagen agreed to invest $2 billion for developing electric vehicle infrastructure in the United States.

Of the total $2 billion funds allocated to the nationwide progress of zero-emission vehicles, the company decided to invest $800 million in California.

Also, Electrify America has chosen a few companies for installing these charging stations. The hired companies include SemaConnect, EV Connect and Greenlots (read more: Volkswagen to Install 2,800 EV Charging Stations in US).

Currently Volkswagen has a Zacks Rank #3 (Hold).

3. Honda is set to unveil a new five-passenger gas-electric hybrid sedan, Insight, at the Detroit auto show next month, per an AP report. The Japanese automaker is of the opinion that the compact car will offer mileage on par with other hybrids.

In fact, Honda’s vehicles are known for quality and fuel economy. However, it has been a late starter to the sale of hybrid and electric vehicles. That said, the company has changed its stance and has set big plans to transition to electric vehicles by 2030. The aim is to comply with the strict fuel economy standards in many countries in Asia and Europe.

The four-door Insight will employ a two-motor hybrid system. Moreover with its elegant style, lively stance, abundant interior space and stellar performance, Insight gels well with Honda’s uniqueness (read more: Honda Set to Unveil New Gas-Electric Hybrid Sedan).

Currently, Honda has a Zacks Rank #2 (Buy).

4. Navistar International’s adjusted earnings came in at $1.43 per share in fourth-quarter fiscal 2017 (ended Oct 31, 2017), comfortably beating the Zacks Consensus Estimate of 65 cents. In the year-ago period, the company reported a loss of 28 cents.

Navistar recorded net income of $135 million against net loss of $34 million in the prior-year quarter.

Navistar’s revenues grew 26% year over year to $2.6 billion in the reported quarter, surpassing the Zacks Consensus Estimate of $2.32 billion. The upside was primarily driven by a 31% increase in sales volume of the company’s Class 6-8 vehicles in the United States and Canada.

Navistar reported earnings of 32 cents per share for fiscal 2017 against a loss of $1.19 in the previous fiscal.

Annual revenues grew 6% year over year to $8.6 billion, outpacing the Zacks Consensus Estimate of $8.2 billion (read more: Navistar’s Q4 Earnings & Revenues Beat Estimates, Up Y/Y).

Navistar carries a Zacks Rank #3.

5. Winnebago’s adjusted earnings came in at 57 cents per share in the first quarter of fiscal 2018 (ended Nov 25, 2017), comfortably beating the Zacks Consensus Estimate of 50 cents. In the year-ago period, earnings were 42 cents per share. Net income soared 53% to $18 million.

Revenues in the first-quarter surged 83.5% to $450 million from $245.3 million in the prior-year quarter. The figure also outpaced the Zacks Consensus Estimate of $384.3 million. This upside in the top line was driven by continued strong growth of the Towable business.

Winnebago carries a Zacks Rank #3.

Performance

Last week, the steepest increase was registered by General Motors Company (NYSE:GM) and sharpest decline was witnessed by Advance Auto Parts, Inc. (NYSE:AAP) .

In the last six months, the steepest increase and the sharpest decline were witnessed by General Motors and Advance Auto Parts, respectively.

What’s Next in the Auto Space?

Watch out for the usual news releases of other auto companies over the next week.

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