Auto Summary: HMC Misses Q2 Earnings, Cummins Invests in Exergy & More – Yahoo Finance | CarTailz

Last week, the China Automobile Manufacturers Association (CAAM) released vehicle sales data for October. Total car sales were 2.5 million units, up 6.9% year-on-year. Passenger car sales rose by 10.7% to 2.23 million units, while commercial vehicle sales fell by 16.2% to 273,000 units. Last month, sales of New Energy Vehicles (NEVs) totaled 714,000 units, up 81.7% year over year. NEV sales totaled 5.28 million units from January to October 2022, an increase of 105.4% over the corresponding period in 2021.

On the news front, the Japan-based auto giants Honda HMC and Nissan NSANY released its quarterly results, with both automakers missing their earnings estimates. Supplier of car equipment Westport fuel WPRT also released third-quarter 2022 results, with earnings matching the Zacks consensus estimate but sales lagging. In the meantime, Ryder system R — a renowned player in supply chain, fleet management, and transportation solutions — announced a collaboration with Aurora Innovation — a major autonomous vehicle company — to test autonomous truck maintenance. leading engine manufacturer, Cummins CMI also made headlines by acquiring a minority stake in Exergy Energy.

While R currently carries a Zacks Rank #2 (Buy), HMC, NSANY, WPRT, and CMI each carry a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks can be found here.

The top stories of the last week

Honda reported earnings of 80 cents per share for the second quarter of fiscal 2023, falling short of the Zacks Consensus estimate of 91 cents. The bottom line is that the previous year’s profit of 88 cents per share also fell. Quarterly earnings totaled $30,824.4 million, beating Zacks consensus estimate of $29,653.6 million. Revenue, however, fell from $30,925.2 million in the year-ago period.

Honda forecasts sales volume from the motorcycles, automobiles and power products segments of 18.43 million units in fiscal 2023, 4.1 million units and 5.66 million units in fiscal 2023, compared to previous estimates of 18.56 million units , 4.2 million units and 5.66 million units respectively . For fiscal 2023, Honda is forecasting sales of 17.4 trillion yen, up from the previous forecast of 16.75 trillion yen. The revenue forecast for fiscal 2023 implies a 19.5% increase over the previous year. Operating profit is estimated at 870 billion yen, up from 830 billion yen previously forecast. Pre-tax profit is forecast at 1,080 billion yen, up from the previous forecast of 1,040 billion yen.

Nissan reported earnings of 15 cents per share for the second quarter of fiscal 2022, falling short of the Zacks Consensus estimate of 20 cents. The bottom line is that the previous year’s profit of 27 cents per share fell. Quarterly earnings totaled $18,288 million, below Zacks’ consensus estimate of $18,291 million. Revenue, however, increased from $17,612 million in the year-ago period.

Nissan has revised its guidance for fiscal 2022 (ending March 31, 2023). The auto biggie expects net sales of 10.9 trillion yen, up from the previous estimate of 10 trillion yen. Projected revenue implies an increase of 8.4 trillion yen in fiscal 2021. Operating profit is now projected at 360 billion yen, higher than the previously forecast 250 billion yen. The projected operating profit also shows a year-over-year increase of 45.5%. Net earnings per share are forecast at 39.59 yen compared to the previous estimate of 38.82 yen, but implying a decline of 55.07 yen in fiscal 2021.

Westport suffered a loss of 7 cents per share in the third quarter of 2022, in line with the Zacks Consensus estimate but larger than the loss of 3 cents recorded in the same quarter last year. Westport reported consolidated revenue of $71.2 million for the quarter, missing Zacks’ consensus estimate of $76 million. Revenue also fell 4% from the prior-year figure of $74.3 million.

Westport generated Adjusted EBITDA of minus $4.5 million for the third quarter, down from a minus $1.4 million in the same period last year. The Company had cash and cash equivalents of $86.5 million as of September 30, 2022 compared to $124.9 million at the end of 2021. Long term debt decreased from $45.1 million at September 31, 2021 Net cash used in operations was $8.59 million for the quarter.

Cummins announced that it has acquired a minority stake in Exergy Energy. The partnership will enable Cummins power system solutions such as generator sets, energy storage systems and switchgear to be installed at the customer’s site to power the entire operation at the time of grid connection outages or peak periods. A major advantage of the cooperation is that the customer does not have to make any upfront investments. Exergy Energy’s cutting-edge software has the potential to track the grid to automatically shift the load to the backup power system during peak usage times. This avoids downtime or peak demand charges.

Cummins is committed to helping its customers achieve their sustainability goals. Many companies struggle to find solutions to grid power problems, hampered by the upfront investment in a generator set and power system components, and the complexity of subscribing to grid services. Through Exergy Energy, Cummins is helping to simplify the process by removing the cost barriers to installing and running a backup generator due to an economical framework.

ryder worked with Aurora to pilot on-site fleet maintenance. With Ryder technicians embedded at Aurora’s South Dallas terminal, the goal is to support the current pilot operations and prepare for large-scale commercial operations. As part of the pilot, Ryder will bring experienced technicians to work alongside Auroras in the south of the latter Dallas terminal. Together they ensure holistic maintenance and care work. Responsibilities include maintaining Aurora’s fleet of Class 8 autonomous tractors, as well as inspections and repairs. Inspecting and maintaining trailers for pilot hauls and maintaining DOT standards, as well as working with Aurora to reduce downtime and improve maintenance operations are the other aspects.

The partnership will further strengthen Ryder’s vision to advance the commercialization of autonomous technology and deployment of autonomous trucks in the United States. The collaboration will leverage Ryder’s nearly 90 years of fleet maintenance experience, which will strengthen Aurora’s autonomous trucks and increase the value of its Aurora Horizon commercial product. Aurora also anticipates extensive on-site maintenance at its terminals as it ramps up pilot customer shipments to 100 per week, which is expected in late 2023.

What’s next in Auto Space?

Industry watchers will keep an eye on the car registrations to be published by the European Automobile Manufacturers’ Association in October.

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