ETFs In Focus Post Auto Earnings

Global automobile sector behemoths, General Motors (NYSE:GM) , Ford Motors (NYSE:F) , Honda Motor Corporation (NYSE:HMC) and Toyota Motors (NYSE:TM) released their quarterly earnings.

General Motors

Shares of General Motors Company were up 2.9% at market close on Oct 25, 2017, as it surpassed the Zacks Consensus Estimate on both earnings and revenue.

Earnings Discussion

General Motors reported non-GAAP earnings per share (EPS) of $1.32 for the third quarter of 2017, beating the Zacks Consensus Estimate of $1.07 but decreasing 2.3% year over year. Moreover, revenues of $33.623 billion beat the consensus mark of $31.597 billion. The company reported a 21.5% year-over-year decline in third-quarter 2017 revenues.

Revenue Performance

GM North America automotive revenues decreased to $24.819 billion from $31.085 billion in the year-ago quarter.

GM International Operations automotive revenues decreased to $3.007 billion from $3.376 billion in the year-ago quarter.

GM South America automotive revenues increased to $2.569 billion from $2.029 billion in the year-ago quarter.

Corporate automotive revenues increased to $80 million from $40 million in the year-ago quarter.

GM Financial Company revenues increased to $3.161 billion from $2.360 billion in the year-ago quarter.

Total unit sales decreased to 1.083 million units from 1.343 million in the year-ago quarter.

Ford

Shares of Ford Motors were up 1.9% at market close on Oct 26, 2017, as it surpassed the Zacks Consensus Estimate on both earnings and revenues.

Earnings Discussion

Ford reported non-GAAP earnings per share of $0.43, increasing 65.4% year over year. Also, it beat the Zacks Consensus Estimate of $0.33 for third-quarter 2017. Moreover, automotive revenues of $33.646 billion surpassed the consensus mark of $32.920 billion. The company reported a 0.94% increase in quarterly revenues year over year.

Revenue Performance

North America automotive revenues decreased to $20.9 billion from $21.8 billion in the year-ago quarter.

South America automotive revenues increased to $1.5 billion from $1.3 billion in the year-ago quarter.

Europe automotive revenues increased to $6.9 billion from $6.3 billion in the year-ago quarter.

Middle East & Africa automotive revenues decreased to $0.6 billion from $0.8 billion in the year-ago quarter.

Asia Pacific automotive revenues increased to $3.7 billion from $3.1 billion in the year-ago quarter.

Financial Services revenues increased to $2.8 billion from $2.6 billion in the year-ago quarter.

Honda Motor Corporation

Shares of Honda Motor were up 2.5% at market close on Nov 1, 2017, due to better-than-expected results. It beat the Zacks Consensus Estimate on both earnings and revenues.

Earnings Discussion

Honda reported non-GAAP earnings per share of $0.86, decreasing 11.3% year over year. Moreover, it beat the Zacks Consensus Estimate of $0.49 for the quarter. Consolidated sales revenues of $33.498 billion also beat the consensus mark of $31.432 billion. The company reported a 3.8% year-over-year increase in quarterly revenues.

Revenue Performance

Motorcycle Business revenues increased to $4.59 billion from $4.01 billion in the year-ago quarter.

Automobile Business revenues increased to $23.85 billion from $22.95 billion in the year-ago quarter.

Financial Service Business revenues increased to $4.82 billion from $4.34 billion in the year-ago quarter.

Power Product and Other Business revenues increased to $746.8 million from $673.5 million in the year-ago quarter.

Total Honda Group unit sales increased to 7.788 million units from 6.996 million units in the year-ago quarter.

Toyota Motor Corporation

Shares of Toyota Motor were up 1.45% at market close on Nov 7, 2017, due to better-than-expected results.

Earnings Discussion

Toyota reported earnings per share of $2.76, surpassing the Zacks Consensus Estimate of $2.62. Sales revenues of $64.407 billion also beat the consensus mark of $63.739 billion. The company reported a 1.7% year-over-year increase in quarterly revenues.

Revenue Performance

Automotive revenues decreased to $57.37 billion from $57.93 billion in the year-ago quarter.

Financial Service Business revenues increased to $4.44 billion from $4.23 billion in the year-ago quarter.

Other Business revenues increased to $3.88 billion from $2.78 billion in the year-ago quarter.

Total Toyota Group unit sales increased to 2.626 million units from 2.538 million units in the year-ago quarter.

In the current scenario, we believe it is prudent to discuss the following ETFs that have a relatively high exposure to the companies discussed.

First Trust NASDAQ Global Auto Index Fund CARZ

This fund focuses on providing exposure to the global automotive sector. It has AUM of $20.8 million and charges a fee of 70 basis points a year. It has an allocation of 8.4% to Honda, 8.4% to General Motors, 8.1% to Toyota and 7.8% to Ford (as of Nov 14, 2017). The fund has returned 24.9% in a year and 19.6% year to date (as of Nov 15, 2017).

WBI Power Factor High Dividend ETF WBIY

This fund focuses on providing exposure to the U.S. automotive sector. It has AUM of $38.4 million and charges a fee of 70 basis points a year. It has 5.5% allocation to General Motors and 5.1% to Ford (as of Sep 30, 2017). The fund has lost 1.7% year to date and 3.1% in a year (as of Nov 15, 2017).

BLDRS Asia 50 ADR Index Fund ADRA

This fund focuses on providing exposure to the Asian automotive sector. It has AUM of $23.6 million and charges a fee of 30 basis points a year. It has 10.2% allocation to Toyota and 3.5% to Honda (as of Nov 14, 2017). The fund has returned 22.9% year to date and 23.7% in the last one year (as of Nov 15, 2017).

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>