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2017-10-23 14:19:33 F Ford $12.10 / -0.0036 (-0.03%) , GM General Motors $45.25 / -0.36 (-0.79%) … 14:19 10/23/17 10/23 14:19 10/23/17 14:19	On The Fly: What to watch in auto space earnings reports Ford (F) and General Motors (GM) are set to begin their earnings season with GM reporting fiscal third quarter earnings before the market open on Tuesday, October 24 with a conference call scheduled for 9:00 am ET. Ford is scheduled to report results of its Q2 results before the market open on Thursday, October 26, with a conference call scheduled for 9:00 am ET. What to watch for: 1. GUIDANCE: When GM reported its second quarter results on July 25, it reaffirmed its fiscal 2017 adjusted earnings per share guidance of $6.00-$6.50, against an analyst consensus of $6.07, at that time. GM also expects FY17 revenue equal to or greater than FY16 GM sees FY17 adjusted auto free cash flow about $7B and FY17 EBIT-adjusted equal to or greater than FY16. Sees returning up to $7B in capital to shareholders through share repurchases of about $5B and dividends to about $2.2B. When Ford reported Q2 results on July 26, it announced that the company expects FY17 adjusted EPS of $1.65-$1.85 against an analyst consensus $1.51, at that time. Ford also announced that FY17 adjusted effective tax rate is "now expected to be about 15%." On October 18, Ford reaffirmed its FY17 adjusted EPS guidance of $1.65-$1.85. The affirmation was issued as the company announced a recall for certain pickup trucks. 2. RECALLS: On September 18, Reuters reported that GM and its Chinese joint venture, Shanghai GM, were going to issue a recall of 2.5M vehicles in China due to defective Takata (TKTDY) airbag inflators. On August 4, the Associated Press reported that GM recalled about 800,000 trucks over faulty steering assist. On October 18, Ford issued a safety recall for 1.3M F-150 and 2017 Super Duty vehicles in North America to add a water shield to side door latches. 3. ELECTRIC VEHICLES: On October 3, Ford provided a strategic update to investors, detailing plans to "refocus and thrive in an evolving and disruptive period for the auto industry." Among its plans, Ford said it will accelerate the introduction of connected, smart vehicles and reduce its internal combustion engine capital expenditures by one-third and redeploy that capital into electrification. Meanwhile, General Motors announced on October 2 that in the next 18 months the company will introduce two new all-electric vehicles, the first of at least 20 new all-electric vehicles that it plans to launch by 2023. In a research note to investors, Nomura analyst Romit Shah initiated coverage of Tesla (TSLA) with a Buy rating, calling it the "winner" in electric cars. F Ford $12.10 / -0.0036 (-0.03%) GM General Motors $45.25 / -0.36 (-0.79%) TKTDY Takata $0.54 / +0.18 (+50.00%) TSLA Tesla $345.10 / -6.71 (-1.91%)	24 Oct 26 Oct 01 Nov 13 Nov

2017-10-23 14:19:33

Ford

$12.10 / -0.0036 (-0.03%)

, GM

General Motors

$45.25 / -0.36 (-0.79%)

… 14:19

10/23/17

10/23

14:19

10/23/17

14:19

On The Fly: What to watch in auto space earnings reports

Ford (F) and General Motors (GM) are set to begin their earnings season with GM reporting fiscal third quarter earnings before the market open on Tuesday, October 24 with a conference call scheduled for 9:00 am ET. Ford is scheduled to report results of its Q2 results before the market open on Thursday, October 26, with a conference call scheduled for 9:00 am ET. What to watch for: 1. GUIDANCE: When GM reported its second quarter results on July 25, it reaffirmed its fiscal 2017 adjusted earnings per share guidance of $6.00-$6.50, against an analyst consensus of $6.07, at that time. GM also expects FY17 revenue equal to or greater than FY16 GM sees FY17 adjusted auto free cash flow about $7B and FY17 EBIT-adjusted equal to or greater than FY16. Sees returning up to $7B in capital to shareholders through share repurchases of about $5B and dividends to about $2.2B. When Ford reported Q2 results on July 26, it announced that the company expects FY17 adjusted EPS of $1.65-$1.85 against an analyst consensus $1.51, at that time. Ford also announced that FY17 adjusted effective tax rate is "now expected to be about 15%." On October 18, Ford reaffirmed its FY17 adjusted EPS guidance of $1.65-$1.85. The affirmation was issued as the company announced a recall for certain pickup trucks. 2. RECALLS: On September 18, Reuters reported that GM and its Chinese joint venture, Shanghai GM, were going to issue a recall of 2.5M vehicles in China due to defective Takata (TKTDY) airbag inflators. On August 4, the Associated Press reported that GM recalled about 800,000 trucks over faulty steering assist. On October 18, Ford issued a safety recall for 1.3M F-150 and 2017 Super Duty vehicles in North America to add a water shield to side door latches. 3. ELECTRIC VEHICLES: On October 3, Ford provided a strategic update to investors, detailing plans to "refocus and thrive in an evolving and disruptive period for the auto industry." Among its plans, Ford said it will accelerate the introduction of connected, smart vehicles and reduce its internal combustion engine capital expenditures by one-third and redeploy that capital into electrification. Meanwhile, General Motors announced on October 2 that in the next 18 months the company will introduce two new all-electric vehicles, the first of at least 20 new all-electric vehicles that it plans to launch by 2023. In a research note to investors, Nomura analyst Romit Shah initiated coverage of Tesla (TSLA) with a Buy rating, calling it the "winner" in electric cars.

Ford