Looking back on automobile manufacturing stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Winnebago (NYSE:WGO) and its peers.
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 10 automobile manufacturing stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 0.7%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $657.4 million, up 6% year on year. This print exceeded analysts’ expectations by 4.8%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ adjusted operating income estimates.
CEO Commentary“Our team delivered a solid quarter and executed with diligence in a challenging market,” said President and Chief Executive Officer Michael Happe.
The stock is down 9.1% since reporting and currently trades at $31.88.
Is now the time to buy Winnebago? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $43.25 billion, up 6.4% year on year, outperforming analysts’ expectations by 3.7%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $12.15.
Is now the time to buy Ford? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Lucid (NASDAQ:LCID)
Founded by a former Tesla Vice President, Lucid Group (NASDAQ:LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.
