Automobile Manufacturers Stocks Q3 In Review: Winnebago (NYSE:WGO) Vs Peers
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at automobile manufacturers stocks, starting with Winnebago (NYSE:WGO).
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 7 automobile manufacturers stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 3.4%.
Luckily, automobile manufacturers stocks have performed well with share prices up 10.1% on average since the latest earnings results.
Weakest Q3: Winnebago (NYSE:WGO)
Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.
Winnebago reported revenues of $720.9 million, down 6.5% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.
“Winnebago Industries’ fourth quarter performance fell short of our expectations, primarily reflecting the sluggish retail demand environment and operating inefficiencies within our Winnebago branded businesses,” said Michael Happe, the Company’s President and Chief Executive Officer.
Winnebago Total Revenue
Interestingly, the stock is up 6.8% since reporting and currently trades at $62.
Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.
General Motors reported revenues of $48.76 billion, up 10.5% year on year, outperforming analysts’ expectations by 9.9%. The business had a very strong quarter with an impressive beat of analysts’ Wholesale revenue estimates.
General Motors Total Revenue
General Motors scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 17.4% since reporting. It currently trades at $57.42.
Named after Nikola Tesla, Nikola (NASDAQ:NKLA) manufactures zero-emission vehicles, focusing on battery-electric and hydrogen fuel cell electric trucks.
Nikola reported revenues of $25.18 million, up 1,554% year on year, falling short of analysts’ expectations by 31.3%. It was a softer quarter as it posted a miss of analysts’ EBITDA estimates.
Nikola delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 26.2% since the results and currently trades at $3.12.
Lucid (NASDAQ:LCID) produces luxury electric vehicles that combine high-end design with electric technology.
Lucid reported revenues of $200 million, up 45.2% year on year. This print met analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ volume estimates but a miss of analysts’ operating margin estimates.
The stock is down 1.4% since reporting and currently trades at $2.19.
The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric adventure vehicles and commercial delivery vans.
Rivian reported revenues of $874 million, down 34.6% year on year. This result came in 10.5% below analysts' expectations. It was a softer quarter as it also recorded a miss of analysts’ EBITDA and earnings estimates.
Rivian had the slowest revenue growth among its peers. The stock is up 19.2% since reporting and currently trades at $11.95.
As expected, the Federal Reserve cut its policy rate by 25bps (a quarter of a percent) in November 2024 after Donald Trump triumphed in the US Presidential election. This marks the central bank's second easing of monetary policy after a large 50bps rate cut two months earlier. Going forward, the markets will debate whether these rate cuts (and more potential ones in 2025) are perfect timing to support the economy or a bit too late for a macro that has already cooled too much. Adding to the degree of difficulty is a new Republican administration that could make large changes to corporate taxes and prior efforts such as the Inflation Reduction Act.
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