3 Auto Stocks Likely To Zoom Past Q2 Earnings Estimates

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The Auto-Tires-Trucks sector is almost halfway through the Q2 earnings season. So far, seven major S&P 500 sector components — Tesla (TSLA Quick Quote TSLA - Free Report), Ford (F Quick Quote F - Free Report), Genuine Parts, PACCAR (PCAR Quick Quote PCAR - Free Report), O’Reilly Automotive (ORLY Quick Quote ORLY - Free Report), Cummins and LKQ Corp — have reported quarterly numbers. A host of auto companies are set to unveil quarterly results by the end of this week, including two S&P 500 sector components.

Picture Thus Far

U.S. auto giants Tesla and Ford breezed past the Zacks Consensus Estimate for earnings and witnessed significant growth in sales and profits on a year-over-year basis. While trucking giant PACCAR delivered mixed results, with earnings topping estimates and revenues lagging the same, specialty retailer of automotive parts O’Reilly posted a comprehensive beat for the second quarter and raised its 2021 guidance. Aftermarket auto parts distributor LKQ and auto replacement parts supplier Genuine Parts also put up a stellar Q2 show and boosted their full-year projections. Engine maker Cummins, which reported quarterly results today, outpaced earnings and sales mark as well as recorded significant year-over-year growth in both the metrics. 

Factors Shaping the Sector’s Q2 Results

Well, despite the chip crisis that has been plaguing the auto market, second-quarter auto sales in the United States grew more than 50% from the prior year — a period heavily impacted by COVID-induced shutdowns. Additionally, the sales figure was slightly higher than the same period in 2019, when adjusted for selling days. Pent-up demand for SUVs, preference for personal mobility, easier credit terms, and gradual economic recovery — thanks to stepped-up vaccination drive as well as massive fiscal stimulus — resulted in strong sales of vehicles.

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