Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Visteon (NASDAQ:VC) and the best and worst performers in the automobile manufacturing industry.
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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.8%.
While some automobile manufacturing stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3% since the latest earnings results.
Visteon (NASDAQ:VC)
Originally spun off from Ford Motor Company in 2000, Visteon (NYSE:VC) designs and manufactures cockpit electronics for vehicles, including digital instrument clusters, displays, infotainment systems, and battery management systems.
Visteon reported revenues of $960 million, flat year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 4.4% since reporting and currently trades at $107.69.
Read our full report on Visteon here, it’s free.
Best Q2: Rivian (NASDAQ:RIVN)
The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.
Rivian reported revenues of $1.66 billion, up 27.2% year on year, outperforming analysts’ expectations by 7.9%. The business had an incredible quarter with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Rivian scored the biggest analyst estimate beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 11.3% since reporting. It currently trades at $14.93.
Is now the time to buy Rivian? Access our full analysis of the earnings results here, it’s free.
