2019-07-23 14:07:36 | Continental AG jumps despite lower guidance, peers spike after punishing yearShares of auto parts makers are trading higher after tire maker Continental Aktiengesellschaft (CTTAY) reported quarterly results Monday night. CONTINENTAL MEETS EXPECTATIONS: Continental, which lowered its FY19 outlook, said: "Though the decline in the automotive industry also affected Continental's business in the second quarter of 2019, preliminary key data indicate that the period's results meet current analyst expectations." LOWERS OUTLOOK: "Whereas the previously communicated outlook was based on expectations of a flat development in global light vehicle production in fiscal 2019 versus the previous year, current expectations are for a decline of around 5%. This will result in consolidated sales and an adjusted EBIT margin below the previously communicated outlook ranges. These figures will also be below current analyst expectations. Unanticipated changes in customer demand are causing volume declines for certain products in the Automotive Group," Continental said. HAS GROUP BOTTOMED?: Shares of Continental AG are down 93% since 2013. Shares peaked at $219.50 in late 2013, and hit a low of $12.83 in 2019. This time last year, Visteon (VC) was trading at $140.64 per share, compared to its recent low of about $44 per share, a 69% drop. Other U.S based auto parts makers, including American Axle & Manufacturing (AXL) and Lear Corporation (LEA), have seen large price declines over the past 12 months. PRICE ACTION: Shares of Continental Ag are up 7%, Visteon and American Axle are both up around 5%, while Lear is up approximately 2%. | |
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