Ford (F) grew U.S. auto sales in the second quarter, defying a slump in the overall industry. A robust June capped the quarter though Ford missed Q2 sales views, after General Motors (GM) and other auto giants saw Q2 sales tank double-digits after idling factories again.
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Ford stock fell Tuesday while GM stock rose, after both made 52-week lows in intraday trade. Analysts at CFRA lowered Ford stock to buy from strong buy Tuesday. They cited “the increased likelihood of recession, which we expect to weigh on industry valuation multiples.” That comes after CFRA cut its auto industry outlook from neutral to negative.
On Friday, GM disclosed a 15% decline in Q2 sales but it outsold Toyota Motor (TM). General Motors also guided Q2 earnings lower Friday while backing full-year guidance.
Stellantis (STLA) and Honda Motor (HMC) on Friday also posted hefty Q2 sales declines.
Over the weekend, Tesla (TSLA) reported global Q2 production and deliveries below expectations.
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Here is how automakers performed in Q2 vs. Cox Automotive expectations. The results show sales volume, as well as sales growth or decline vs. a year ago.
Ford Motor
Q2 auto sales estimate: 496,248, up 5.1%.
Results: Ford sold 483,688 vehicles in Q2, capped by a strong June. Ford’s Q2 sales were up 1.8% year over year, and bucked a 21% decline for the overall industry amid chip and other supply constraints, according to CFRA.
In June, Ford’s total sales leapt 31.5% while retail sales grew 30%. Pickup trucks grew 26% last month and SUVs leapt 36%.
EV sales surged 77% in June, including 1,837 units of the F-150 Lightning all-electric pickup in its first full month of sales. More than 75% of those who reserved the Lightning EV, a rival to the upcoming Tesla Cybertruck, were new to Ford brand.
Mustang Mach-E EV sales tanked 21% in June, but are up 36% year to date.
Going into July, dealer stock for both the F-150 Lightning and Mustang Mach-E is higher, positioning both key new EVs for a stronger sales month, Ford said in a release Tuesday.
Ford stock fell 1% to 11.20 Tuesday, hitting a 17-month low intraday but closing near session highs. Shares slid nearly 6% last week and remain below their 50- and 200-day lines.
General Motors
Q2 auto sales estimate: 575,911, down 15.8%.
Results: GM sold 582,401 vehicles, down 15%. That included 7,300 electric vehicles. The company said it continues to ramp up on new EVs, including the Cadillac Lyriq SUV and Hummer truck.
In a news release Friday, General Motors said that Q2 wholesale volumes were impacted by the ongoing semiconductor supply shortage and other supply-chain disruptions, mostly in June. As a result, GM will delay delivery of about 95,000 units to dealers into the second half of 2022.
In a separate 8-K filing, the auto giant guided Q2 EBIT-adjusted of $2.3 billion-$2.6 billion, lower at the midpoint than consensus. It maintained full-year EPS guidance of $6.50-$7.50, on expectations for a second-half recovery. It continues to see full-year wholesale volumes rising 25%-30%.
Shares rose 0.6% to 32.37 Tuesday, reversing higher and closing at session highs. GM stock dived nearly 8% last week, below a falling 50-day line and well below the 200-day average.
Toyota Motor
Q2 auto sales estimate: 543,819, down 21%.
Results: Toyota sold 531,105 vehicles in Q2. The automaker’s June sales fell 18%, year over year. Sales in the first half of 2022 fell 19%. Its sales of electric and hybrid vehicles were down 13% in June and are down 11% year to date.
Toyota Motor stock shed 0.5% on the stock market today, near a 52-week low.
Stellantis
Q2 auto sales estimate: 412,005, down 15.1%.
Results: Stellantis sold 408,521 vehicles, down 16%. Year to date, sales are down 15%.
Stellantis stock tanked 5.6% Tuesday, the lowest since late 2020, after reports of big production losses due to chip shortages. Stellantis is the parent for Chrysler, Fiat and Peugeot brands.
Honda Motor
Q2 auto sales estimate: 254,230, down 47.7%.
Results: Honda sold 239,789 vehicles, down 51%. The automaker said Q2 sales were severely challenged by supply issues while customer demand remains strong.
Honda stock retreated 2.5% Tuesday to the worst since September 2020.
U.S. Auto Sales Slow, Outlook Cut For 2022
The annualized pace of U.S. light vehicle sales reached 13.4 million units in Q2, down from 17 million a year ago, according to GM’s estimate.
On Tuesday, Cox Automotive cut its full-year forecast to 14.4 million units, below the 2020 level.
Inventory shortages continue to weigh on U.S. auto sales, analysts say.
The pandemic fueled shortages of microchips and other components that automakers need to build cars. The Russia-Ukraine war and China’s Covid battle have aggravated supply pressures.
In Q2, General Motors, Ford and Stellantis again suspended factories after their U.S. sales tanked double digits in the first quarter.
This summer, Ford will reportedly scale back vehicle production at four plants. But on June 28, Volkswagen (VWAGY) CEO Herbert Diess said that chip shortages are easing.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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Source: https://www.investors.com/news/u-s-auto-sales-q2-slide-gm-ford-stellantis-idled-factories/?src=A00220&yptr=yahoo