Microchip Shortage Is Hitting General Motors Hard As Company Extends Downtime At Several Assemblies

The global shortage of microchips is affecting the operations of numerous vehicle manufacturers, forcing them to make drastic changes to their manufacturing schedules.

General Motors Extends Downtime At Crossover Assemblies

Detroit-based General Motors has announced that it has extended the downtime at several crossover assemblies across the United States. The global shortage of microchips is the major reason why the automobile manufacturer is taking such drastic action.

In a statement yesterday, the automaker said, “These most recent scheduling adjustments are being driven by the continued parts shortages caused by semiconductor supply constraints from international markets experiencing COVID-related restrictions.”

General Motors added that while the situation remains complex and fluid at the moment, it is prioritizing full-size truck production due to their high demand. The automaker said seven of its plants in North America would be fully operational next week. They are; the full-size SUV plant in Arlington, Texas; the GMC Acadia, Cadillac XT5 and XT6 plant in Spring Hill, Tenn; the full-size pickup plants in Flint, Mich., Fort Wayne, Ind., and Silao, Mexico; the Chevrolet Corvette plant in Bowling Green, Ky.; and Fairfax Assembly in Kansas.

Automobile manufacturers would fall short of 9.4 million vehicles this year in terms of production due to the worldwide shortage of microchips. At the moment, they are down by 8.2 million, with North America accounting for 2.6 million so far.

General Motors Is Having Troubles With Its Electric Cars

General Motors has been experiencing certain troubles with its electric vehicle, the Chevrolet Bolt. The company extended the shutdown of its assembly plant that manufactures the Bolt until mid-October due to another safety notice related to the car.

Earlier this week, General Motors had asked Bolt owners to park at least 50 feet from other vehicles inside parking garages because the electric cars could catch fire. The company also said users should not leave their vehicle charging unattended, even if they are using a vehicle charging station in a parking deck.

GM stock chart. Source: FXEMPIRE

The shares of General Motors are up by 0.60% at Friday’s pre-trading session despite the negative news from the company over the past 48 hours. GM is trading at $51.80 per coin and has delivered excellently this year.

GM’s stock price is up by more than 20% year-to-date. It started trading at $41 per share at the beginning of the year, and it is now trading above $51 per share.

GM to Cut North American Production, Citing Chip Shortage

The largest U.S. automaker will halt production next week at its Fort Wayne plant in Indiana and its Silao plant in Mexico, both of which build pickup trucks. In total, GM is cutting production at eight North American assembly plants in September.

The industry-wide chip shortage is causing massive auto production cuts around the globe and auto industry officials say the problem is getting worse.

GM shares were largely unchanged in late trading Thursday.

Earlier this week, Ford Motor Co said it will also cut truck production next week because of the chips shortage and said its August U.S. sales were down 33% on the chip shortage. Toyota Motor Corp said last month it will slash global production for September by 40% from its previous plan.

GM will halt production at its Wentzville, Missouri plant for two weeks starting Sept. 6 that builds midsize trucks and full-size vans. GM will also halt production at the CAMI Assembly in Canada and San Luis Potosi Assembly in Mexico for two additional weeks. The company builds its Equinox SUV at both plants.

The automaker is also idling production for two additional weeks at its Lansing Delta Township plant that builds the Chevrolet Traverse and the Buick Enclave.

GM will cut two weeks of production in September at the Spring Hill Tennessee plant that builds the GMC Acadia, Cadillac XT5 and Cadillac XT6. Its Ramos, Mexico plant will take two additional weeks of downtime for Blazer production, while Equinox production will be down through the week of Sept. 27.

Production of the Equinox has been down since Aug. 16.

Democratic Senator Mark Warner said the “continuing impact of the chip shortage – epitomized most recently in the news that GM will be forced to idle plants across North America – speaks to the urgency of passing bipartisan legislation to fund new semiconductor production in the United States.”

GM said during production downtime it will repair and ship unfinished vehicles from many impacted plants, including Fort Wayne and Silao.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by David ShepardsonEditing by David Evans and Chizu Nomiyama)

Chip Shortage Forces General Motors To Cut North American Vehicle Production Again

General Motors has been in a tight spot in recent months due to a shortage of chips, and the company has now been forced to make another tough decision regarding its operations in North America.

General Motors Reduces North American Vehicle Production

General Motors announced earlier on Thursday that it has significantly cut its vehicle production in North America. A shortage in chips is the major reason why the automobile manufacturer is making this decision.

According to The New York Times, the vehicle manufacturer is extending downtimes at eight of its manufacturing plants in the United States. The company said, “These most recent scheduling adjustments are being driven by the continued parts shortages caused by semiconductor supply constraints from international markets experiencing Covid-19-related restrictions.”

General Motors said it would idle six plans in the region for two weeks in September and two more plans for a week each. The company complained that a global shortage of computer chips is the main reason why these plants would remain idle for most of the month.

The shortage in computer chips had gone on longer than vehicle manufacturers had expected. General Motors and the other leading auto manufacturers had expected the chip shortage to end by the end of the second quarter. However, we are deep into the third quarter, and the situation is no close to ending.

Ford is another company that had been affected by the chip shortage. The company reported a decline in sales in August compared to the same month last year due to the shortage of the chips. Other leading vehicle manufacturers affected by the situation include Chevrolet and GMC. Chevrolet was forced to cut back production of its midsize pickups, vans, and Trailblazer.

GM’s Stock Price Slightly Up Despite The Disappointing News

The shares of General Motors are trading in the green zone despite the statement by the company earlier today. GM is trading at $49.34 per share, up by 0.48% since the market opened a few hours ago.

GM stock chart. Source: FXEMPIRE

Year-to-date, GM is up by more than 20%. GM began 2021 trading at $40 per share but has now rallied and is trading close to $50.

Why General Motors Stock Is Down By 3% Today

General Motors Stock Declines As Company Expands Chevrolet Bolt EV Recall

Shares of General Motors remain under pressure after the company stated that it would expand the recall of its Chevrolet Bolt electric vehicles due to the risk of fire from the battery pack. This recall would cost as much as $1 billion. The previous recall costed $800 million, so battery-related problems are projected to cost $1.8 billion.

General Motors stock gained downside momentum at the start of this month after the company’s earnings guidance missed analyst estimates. The new $1 billion blow has already put material pressure on the company’s shares, and the market will likely remain focused on the EV recall and global chip shortage in the upcoming weeks.

What’s Next For General Motors Stock?

Analyst estimates have trended down in recent weeks, which is not surprising as the company has reduced its adjusted earnings guidance to $5.40 – $6.40 per share for the full year 2021. Currently, analyst consensus calls for earnings of $6.33 per share in 2021 which is close to the high end of the company’s guidance, but it is clear that earnings estimates will continue to decline.

In 2022, General Motors is projected to report earnings of $6.93 per share, so the stock is trading at forward P/E of less than 7. However, earnings estimates may move lower in the upcoming weeks, which is often bearish for a stock.

At this point, General Motors stock needs upside catalysts to break the current downside trend. Otherwise, the market will remain focused on the company’s problems with the battery pack and the global ship shortage which hurts all automakers.

It remains to be seen whether value-oriented investors will be ready to increase purchases of General Motors stock after the recent pullback. Current valuation levels look cheap but earnings estimates may move lower, and the stock needs additional positive catalysts to gain upside momentum.

For a look at all of today’s economic events, check out our economic calendar.

Shares Of General Motors Down By 8% After Missing Earnings Expectations

The shares of General Motors are down by over 8% today after the company missed earnings expectations in the second quarter of 2021.

General Motors Miss Earnings Expectations

Car manufacturer General Motors reported its second-quarter earnings earlier today, and it didn’t perform as analysts had expected. The shares of the company dipped following this announcement despite General Motors raising guidance for the year.

The adjusted earnings per share is $1.97 vs. $2.23 expected. However, General Motor’s revenue surpassed analysts’ expectations. The company generated $34.17 billion in the second quarter of the year compared to the $30.9 billion estimated by analysts.

The second-quarter earnings were negatively affected by the $1.3 billion warranty recall costs, including the $800 million General Motors spent on o the Chevrolet Bolt EV. The electric car has so far been recalled twice over the past year due to fire risks, with the most recent happening last month.

General Motors also raised its adjusted full-year guidance. It currently stands between $11.5 billion and $13.5 billion, or $5.40 to $6.40 per share. The adjusted full-year guidance is up from the previous $10 billion to $11 billion, or $4.50 to $5.25 a share.

GM’s Shares Down By 8%

The Shares of General Motors are down by over 8% since the company reported its Q2 earnings. At the time of this writing, GM is trading at $53.01 per share. Year-to-date, GM’s shares are up by over 20%. It started in 2021 trading at $41 per share, but it is now trading at $53.

GM stock chart. Source: FXEMPIRE

The automaker expects to manufacture roughly 100,000 fewer vehicles in North America in the second half of 2021 compared to H1. General Motor’s financials have improved in recent months. The unadjusted net income was $2.8 billion for Q2 compared with a loss of $758 million in the same period last year. Furthermore, General Motors reported adjusted pretax earnings of $4.1 billion for Q2, up from a loss of $536 million a year earlier.

Why General Motors Stock Is Down By 8% Today

General Motors’ Stock Declines As Earnings Guidance Misses Analyst Estimates

Shares of General Motors gained strong downside momentum after the company released its second-quarter results. General Motors reported revenue of $34.2 billion and GAAP earnings of $1.90 per share, easily beating analyst estimates on both earnings and revenue.

For the full-year 2021, the company expects to report earnings GAAP earnings of $5.12 – $6.12 per share. On an adjusted basis, General Motors projects to report a profit of $5.40 – $6.40 per share, and the company’s expectations are lower than analyst estimates.

General Motors stated that it should have a strong second half of the year despite risks posed by the coronavirus pandemic and global chip shortage. However, the market focused on the company’s earnings guidance, and the stock found itself under strong pressure.

What’s Next For General Motors Stock?

The company raised its guidance for the full-year 2021, but its new forecast is below analyst estimates. It looks that analysts were too optimistic while General Motors failed to live up to their high expectations. This is bad for the stock, and it is not surprising to see that shares of General Motors are dropping like a rock today.

I’d also note that worries about potential disruptions brought by the coronavirus pandemic may also have a negative impact on General Motors stock. While the company stated that is was confident about its performance in the second half of the year, the rapid spread of the Delta variant of coronavirus may ultimately put more pressure on chip manufacturers and hurt automakers.

Analyst estimates for General Motors’ earnings will be lowered which is often bearish for a stock despite the fact that investors have already seen the company’s own estimates. However, a strong correction may ultimately attract value-oriented investors who search for good deals in a very expensive market.

For a look at all of today’s economic events, check out our economic calendar.

General Motors Sells Off Despite Strong Quarter

General Motors Co. (GM) is trading lower by more than 2% in Wednesday’s pre-market despite beating Q2 2021 top and bottom line estimates by healthy margins. The automaker earned $1.97 per-share during the quarter, $0.12 better than expectations, while revenue rose 103.8% year-over-year to $34.2 billion, more than $4 billion higher than consensus. The company raised full year 2021 earnings-per-share (EPS) guidance from the $4.50 – $5.25 range to the $5.40 – $6.40 range.

Production Hampered by Chip Shortages

Chip shortages continue to weigh on quarterly metrics and investor sentiment. The sell-the-news reaction comes just one day after General Motors announced the shutdown of three North American pickup truck plants due to shortages. These closures follow a hopeful June statement that outlined a series of steps to achieve higher production levels. Sadly, one of those initiatives focused on a Flint, Michigan pickup assembly that’s impacted by the latest shutdown.

Analyst Dan Niles at Wedbush Securities outlined the bull case on General Motors last month, posting an ‘Outperform’ rating while noting that “going forward GM continues to be a re-rating story as the Street treats the Detroit automaker no longer as a traditional auto company trading based on book value, but a broader disruptive technology play that can start to trade at multiples similar to the likes of Tesla and other pure-play electric vehicle companies.”

Wall Street and Technical Outlook

Wall Street consensus remains highly bullish, with a ‘Buy’ rating based upon 19 ‘Buy’, 1 ‘Overweight’, and 3 ‘Hold’ recommendations. Price targets currently range from a low of $64 to a Street-high $90 while the stock is set to open Wednesday’s session more than $7 below the low target. This dismal placement tells us that analysts have done a poor job estimating the impact of chronic chip shortages on 2021 share valuation.

General Motors broke out above the 2017 high in the 40s in January 2021, just ten months after posting an all-time low. The uptick carved a series of marginal new highs into June’s all-time high at 64.30, ahead of a pullback that reinforces resistance in the low 60s while generating more than seven weeks of testing at the 50-day moving average. Accumulation has now dropped to the lowest low since January but price action, so far at least, has held horizontal support at 54. That level marks a line-in-the-sand that bulls need to hold at all costs.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication.

U.S. Automakers Reinstate Mask Mandates at All Plants Effective Wednesday

By David Shepardson

General Motors Co, Ford Motor Co and Stellantis NV said in a joint statement with the union the move is in response to the Center for Disease Control and Prevention’s (CDC) change in COVID-19 guidance for masks for fully vaccinated people related to the Delta variant.

The CDC said last week fully vaccinated people should wear masks indoors in public spaces in places with substantial or high COVID-19 community transmission rates. The CDC said on Monday that almost 80% of U.S. counties are now at those levels.

At least one major international automaker also plans to reinstate mask requirements for employees later this week, a person briefed on the matter told Reuters.

In June, the U.S. automakers and UAW announced that fully vaccinated workers at their U.S. factories would not have to wear masks on the job beginning on July 12. Numerous automakers operating in the United States had already begun lifting pandemic mask mandates as cases declined.

(Reporting by David Shepardson, Editing by Franklin Paul and Emelia Sithole-Matarise)

A Post-Covid Hangover – Should You Worry About Your Portfolio?

Amazon executives noted shifting consumer habits as the pandemic eases and people become more mobile. Amazon forecasted the next quarter’s sales at between $106 billion and $112 billion, compared to Wall Street expectations for right around $119 billion.

Amazon’s projections would still represent growth of +10% to +16%. Keep in mind, bears are also pointing to ongoing fears of supply chain hiccups, higher-trending inflation, and new coronavirus outbreaks. Earnings come at a busy pace again today with results from Caterpillar, Cerner, Chevron, CNH Industrial, Colgate Palmolive, Enbridge, Exxon Mobil, Johnson Control, and Procter & Gamble.

The worry on Wall Street is that this new normal rate of growth will be slower than many analysts and trading firms are forecasting coupled with higher inflation and or supply chain dislocations corporate profits could fall under some pressure or in this case be less than Wall Street is forecasting for the next few quarters. Bulls expect more consumer spending will shift from goods and pandemic-related services (delivery, video games, cloud/collaboration software) but are still betting on pent-up demand for things people missed out on during lockdowns, as well as goods and services that are currently in short supply.

Data to watch

Updated inflation data is also on tap with the ISM Manufacturing Index on Monday and the Services Index on Wednesday.

There will be plenty more earnings next week too, including Simon Properties and Zoom on Monday; Activision Blizzard, Alibaba, Amgen, Clorox, ConocoPhillips, Eli Lilly, Fidelity, Match Group, Monster Beverage, Occidental Petroleum, and Phillips 66 on Tuesday; Allstate, CVS, Etsy, General Motors, Kraft Heinz, Marathon Petroleum, MetLife, MGM Resorts, Rocket Companies, Roku, Trane, and Uber on Wednesday; Adidas, AMC, Carvana, Cigna, Cloudflare, Corteva, Duke Energy, Kellogg, Moderna, Nintendo, Novo Nordisk, Siemens, Square, Wayfair, Zillow, and Zoetis on Thursday; and Dish Network, Dominion Energy, and DraftKings on Friday.

Insider Accumulation

ES ##-## (Daily) 2021_08_01 (19_25_02)

I have mixed feelings about SP500. There are a few signs of weakness. However, it might be the result of low summer activity. Advance-Decline Line is clearly bearish. Insider Accumulation is also not that strong. Moreover, the Volatility Index is very low and potentially it could bring a pullback. In any case, SP500 futures failed to close the week above Gann resistance. And that is also a negative sign.

The Federal Reserve policy is still supportive. But keep in mind, that SP500 has rallied around 100% since the pandemic bottom without any pullback. And the retest of key support zones near 4200 and 4000 is realistic.

On the other hand, the continuation of the rally is also possible but only if price sustains above 4400. If that happens, bulls will target 4500 and 4600 in extension.

General Motors Turns Higher After Tough Week

General Motors Corp. (GM) posted strong gains on Friday, rising nearly 5% in reaction to bullish analyst comments. The uptick recouped all but 20 cents of a post-holiday slide that dropped the auto manufacturer to the lowest low since May 20th. Even so, accumulation hovered near a 6-month low as the week drew to a close, highlighting aggressive profit-taking after the 247% advance off the 2020 low and chip shortages that continue to impact short-term revenue.

Aggressive Transition into Electric Vehicles

The company has outlined an aggressive transition into electric vehicles, with billions committed to projects and production between now and 2025. However, sidelined investors worry that manufacturers will need to navigate a minefield of obstacles to achieve critical mass for EV sales. For starters, the crazy-quilt of incompatible charging stations scattered across the United States could dampen sales well into the second half of the decade, despite plunging costs for batteries.

Wedbush analyst Dan Ives outlined the bull case on Friday, noting the “laser focus on EV has given new energy and strategic focus to GM which the Street has clearly started to take notice. Going forward GM continues to be a re-rating story as the Street treats the Detroit automaker no longer as a traditional auto company trading based on book value, but a broader disruptive technology play that can start to trade at multiples similar to the likes of Tesla and other pure-play electric vehicle companies.”

Wall Street and Technical Outlook

Wall Street consensus is wildly bullish, standing at a ‘Buy’ rating based upon 19 ‘Buy’, 1 ‘Overweight’ and 3 ‘Hold ‘recommendations. No analysts are recommending that shareholders close positions and move to the sidelines. Price targets currently range from a low of $64 to a Street-high $90 while the stock ended Friday’s session nearly $6 below the low target. This weak placement highlights anxiety about chip shortages and other pandemic-driven headwinds.

General Motors rallied above a 10-year trendline in February 2021 and topped out in the low 60s in March. It failed two breakout attempts into June, triggering a decline that tested four-month support in the mid-50s last week. Weekly and monthly Stochastics oscillators have now flipped into sell cycles, predicting mixed price action into the fourth quarter. A breakout at either end of the four-month trading range should dictate the next large-scale trend move, higher or lower.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Wedbush Predicts GM’s Stock Would Rise By Over 50%. It Is Now Up By 3%

The shares of General Motors are rallying today after Wedbush rated the company’s stock as outperform.

Wedbush Rates GM’s Stock As Outperform

Wedbush, one of the top wealth management, brokerage and advisory firms ​in the United States, has boosted its rating of General Motors. According to the firm, General Motors’ stock will outperform the industry over the coming months.

Wedbush said GM’s transition into an electric car company meant that it will now be considered a tech company, and that would be favorable for its stock. The wealth management firm predicts that GM’s stock price would rally by 50% or more in the coming months.

Last month, we reported that General Motors is expanding its position in the electric vehicle sector. The company raised its spending on electric and autonomous vehicles to $35 billion through 2025. It was a 30% increase from the initial budget it made last year.

General Motors said the increase in funding is to allow it to roll out more electric vehicles and boost the production of its battery and fuel cell technologies. The company expects to sell over a million electric cars annually by 2025.

GM Shares Rally Following Stock Upgrade

The shares of General Motors began rallying after the stock received an outperform rating from Wedbush. GM is currently up by 3.6% today and is trading above $58 per share. Year-to-date, GM has performed excellently.

GM stock chart. Source: FXEMPIRE

It began 2021 trading at $41 per share. However, numerous changes in the company and the focus on electric vehicles have helped it rally higher and maintains its upward momentum. Currently, GM’s stock price is up by roughly 40% year-to-date.

The stock price could surge higher over the next few months as the new CEO, Mary Barra, makes changes in the company.

Honda, Nissan Saw China Sales Tumble in June

Honda sold 118,168 cars in China in June, down 17% from a year earlier. Nissan said in a statement that it sold 114,605 vehicles in China last month, down 16.3%.

The China Association of Automobile Manufacturers (CAAM) said on Monday that it expects vehicle sales in China to hit 1.93 million units in June, down 16.3% from a year earlier.

Separately, General Motors Co, which only reports quarterly China sales, said it sold over 750,000 between April and June, up 5.2% from the same period last year.

(Reporting by Yilei Sun and Tony Munroe; Editing by Kim Coghill)

GM And Waymo Increase The Competition In The EV and Autonomous Cars Sector

General Motors is expanding its spending on electric vehicles (EVs) and autonomous cars to $35 billion over the next four years, while Alphabet’s self-driving car company Waymo raises $2.5 billion in its latest investment round. The two companies intend to compete with some of the leading names in the EV and self-driving vehicles sector.

GM raises EV and autonomous car spending

America’s largest automaker General Motors is in a race to close the gap in the electric vehicle sector and catch up to the likes of Tesla. For this reason, the company announced that it is raising its spending on electric and autonomous vehicles to $35 billion through 2025. This latest development represents a 30% increase from its 2020 plans.

Per the company, the extra funds would be used to expand GM’s rollout of EVs and boost the production of its battery and fuel cell technologies. GM intends to build two new battery plants in the United States in addition to two that are currently under construction.

The extra investment would allow GM to catch up to industry leader Tesla and fight for leadership in the industry against the likes of Volkswagen. The company projects to sell over a million EVs annually by 2025.

GM chart. Source: FXEMPIRE

GM’s stock price is performing excellently at Wednesday’s pre-market trading session. It is currently up by 1.38% and could rise further once the market opens. GM CEO Mary Barra said the move to electric vehicles is to ensure that the company transforms to a more sustainable future.

Waymo raises $2.5 billion in latest funding round

The autonomous vehicle industry should expect more competition after Google sibling company Waymo announced earlier today that it had raised $2.5 billion in the latest funding round. The funds would be used to advance its autonomous driving technology and grow its team.

The self-driving car industry has struggled to hit the ground running as adoption has been low so far. However, Waymo expects to turn things around and achieve the desired growth. So far, Waymo’s delivery unit, Waymo Via, is being used by freight partners and delivery clients like UPS to deliver goods. The company is already using its autonomous vehicles as a ride-hailing service in Phoenix.

GOOG chart. Source: FXEMPIRE

Alphabet Inc.’s stock price is down by 0.048% at Wednesday’s pre-market trading session, which might suggest the market is not so thrilled about the Waymo progress.

Gm Expands Onstar Services Beyond Its Vehicle Owner Base

By Joseph White

Onstar Guardian services, including roadside assistance and crash response dispatching, will be offered through an Apple or Android smartphone app to people who don’t drive GM vehicles for $15 a month after a one-month trial, GM said.

GM Chief Executive Mary Barra is pushing to extend Onstar’s reach – and its monthly subscription revenues – as part of a broader plan to expand the automaker’s sources of income beyond manufacturing cars and trucks.

Onstar is developing new insurance offers and a data analytics service for fleet operators.

GM, in its announcement, did not say how much additional revenue it expects from offering Onstar Guardian beyond the GM vehicle owner population. The company does not break out Onstar’s financial results.

(Reporting By Joe White; editing by Barbara Lewis)

GM Restarting Some Plants Hit by Chips Shortage

By David Shepardson

GM said it is restarting operations at four plants in the United States, Mexico and Canada starting next week. Two plants in Mexico – San Luis Potosi Assembly and Ramos Assembly – that build the Chevrolet Equinox, GMC Terrain and Chevrolet Blazer will resume production on May 31.

GM said its “supply chain organization continues to make strides working with our supply base to mitigate the near-term impacts of the semiconductor situation.”

GM shares were up 4% in early trading.

Next week GM will also resume full production on May 31 at its Bupyeong 1 Assembly in South Korea, which produces the Chevrolet Trailblazer and Buick Encore GX and has been operating at 50% capacity since April 26, and return the Changwon assembly plant to two shifts.

GM’s CAMI Assembly plant in Ingersoll, Ontario, that builds the Equinox will resume production earlier than expected on June 14 and run through July 2. The plant has been idled since February 8.

Lansing Grand River will restart production of the Chevrolet Camaro earlier than expected on June 21. The plant has been down since May 10.

GM said it continues to leverage every available semiconductor to build its most in-demand products, including full-size trucks and SUVs, but said the situation continues to remain fluid globally.

Earlier this month, consulting firm AlixPartners said the global semiconductor chip shortage will cost automakers $110 billion in lost revenues this year, up from a prior estimate of $61 billion, as it forecast the crisis will hit the production of 3.9 million vehicles.

(Reporting by David ShepardsonEditing by Nick Zieminski)

Ford Motor Trading at Five-Year High

Ford Motor Co. (F) is trading at a five-year high on Thursday following a well-received Investors’ Day presentation that unveiled a major turnaround plan to address the company’s electric future. A RBC Markets upgrade has added to growing bullishness, triggering a breakout above March resistance at 13.62. The uptick raises hopes the company will play now catch-up with outsized returns at rivals Tesla Inc. (TSLA) and General Motors Co. (GM).

Shift Into Electric Vehicle Era

The automaker will invest more than $30 billion in electric vehicle research and production and is looking for EV to comprise up to 40% of all sales by 2030. It will invest part of those funds in battery technology, creating Ford Ion Park, which will include “more than 150 experts in battery chemistries, testing, manufacturing and value-chain management, who will boost battery range and lower costs to customers and Ford”.

RBC Capital Markets upgraded the stock to ‘Outperform’ and raised their target to $17 after the event, noting the plan addresses long-term concerns about the automaker’s shift into electric vehicles. Analyst Joseph Spak provided upbeat commentary on the long-term outlook, noting “we have more confidence in financial targets, concerns over BEV strategy were addressed, numbers are likely moving higher, and the stock is still not overly expensive.”

Wall Street and Technical Outlook

Wall Street consensus stands at an ‘Overweight’ rating based upon 8 ‘Buy’, 1 ‘Overweight’, 11 ‘Hold’, and 1 ‘Sell’ recommendation. Price targets currently range from a low of $9.00 to a Street-high $17 while the stock is set to open Thursday’s session about $1.25 above the median $13 target.  There isn’t much wiggle room for traders to book profits in this sleepy configuration but it could mark a major opportunity for long-term investors.

Ford hit an all-time high in the upper 30s in 1999 and rolled into a 9-year decline that ended near a buck in 2008. The subsequent rally stalled in the upper teens in 2011, ahead of persistent downside that cratered to an 11-year low in March 2020. The stock rallied above a massive trendline of lower highs in January 2021, signaling the first uptrend since 2009. However, the advance is now headed toward heavy resistance in the upper teens, limiting upside potential.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Ford Follows GM, VW With Two New Dedicated EV Platforms by 2025

By Paul Lienert and Ben Klayman

The all-EV platforms are part of an ambitious multi-year, multi-billion-dollar plan the No. 2 U.S. automaker will outline to investors at its Capital Markets Day in an online event.

The dedicated platforms will give Ford common architectures — including shared chassis components, electric motors and battery packs — on which to base many of its future electric vehicles. That will enable it to simplify and reduce the expense of everything from logistics to manufacturing as it transitions from a global lineup of mostly fossil-fueled products.

Ford said it does not comment on future product speculation.

At Wednesday’s investor event, the company also will provide more details on its long-range battery strategy, including a recently announced battery joint venture with Korea’s SK Innovation, as well as broader goals for electric, commercial and self-driving vehicles, said the sources, who asked not to be named.

Ford previously said it will spend $22 billion through 2025 on electrifying many of its vehicles in the Americas, Europe and China. The sources said Ford is planning to launch at least nine all-electric cars and car-based SUVs and at least three electric trucks, vans and larger SUVs, including second-generation editions of the Ford F-150 Lightning and Mustang Mach-E at mid-decade.

What Ford Chief Executive Jim Farley cannot predict, however, is whether — and how many — customers will embrace the newer battery-powered vehicles, even if they are able to match or beat current combustion-engine counterparts in price, performance and operating costs. That concern is shared by nearly all automakers except Tesla, whose lineup is 100% electric.

Ford’s traditional rivals have sprinted ahead, with both VW and GM committing tens of billions of dollars to electrify their fleets in the same markets as Ford, but on more aggressive timetables. VW and GM each will have at least two dedicated EV platforms, on which many of their future vehicles will be based.

VW launched the first of its all-new electric vehicles, the ID.3, last year in Europe, while GM will begin building its new Hummer EV pickup later this year in the United States. Both companies also are rolling out additional EV models that will share key components with those vehicles.

Ford earlier this year introduced the Mustang Mach-E, an electric crossover built on a new dedicated platform with the internal designation GE, the sources said.

A newer version of that platform, designated GE2, will debut in mid-2023, underpinning new Ford and Lincoln SUVs, according to Sam Fiorani, head of global forecasting at AutoForecast Solutions.

The same GE2 platform eventually will be used as the base for replacements for the Mustang coupe and Mach-E, the sources said.

Ford will use a second passenger car platform — a version of Volkswagen’s MEB architecture — in Europe for at least two new models beginning in 2023, the sources said.

In February, Ford said its European lineup will be all-electric by 2030.

The redesigned F-150 Lightning, due in late 2025, is expected to be the first to employ the new TE1 truck architecture, Fiorani said. The first-generation Lightning, which debuts next spring, uses a platform that is heavily derived from the standard F-150.

Ford could also use the new TE1 platform for electric versions of the Lincoln Navigator and Ford Expedition SUVs, the sources said.

In addition, Ford is expected to get a new electric vehicle, possibly a midsize pickup, that would be based on a platform from EV startup Rivian, in which Ford is an investor.

(Reporting by Paul Lienert and Ben Klayman in Detroit; Editing by Dan Grebler)

Biden to Pitch his $174 Billion Electric Vehicle Plan in Michigan

By David Shepardson and Nandita Bose

He will also rule out consumer incentives for high-priced electric luxury models, according to a White House fact sheet, as he argues for dramatic government spending to prod Americans to buy electric vehicles at a preview of Ford’s new EV F-150 pickup truck.

Biden is pushing for electric vehicles in the auto industry’s heartland, and trying to win over auto workers worried that more battery electric cars and trucks will mean fewer jobs.

The White House wants to encourage new battery production facilities, which are key to ramping up U.S. electric vehicle manufacturing.

Biden’s plan “proposes cost-sharing grants to support new high capacity battery facilities in the United States,” the fact sheet said, and backs grants to fund the retooling of shuttered factories “to build advanced vehicles and parts.”

United Auto Workers President Rory Gamble, who has criticized Ford and General Motors plans to build some EVs in Mexico, urged “Biden to make certain that investments to bolster electric vehicle production and sales incorporate strong labor standards and ensure that the vehicles of the future support good union jobs. Taxpayer dollars should be spent in support of U.S. built vehicles, not imports.”

The centerpiece of Biden’s EV plan is $100 billion in consumer rebates, according to an April U.S. Transportation Department email to lawmakers.

The White House fact sheet says Biden’s plan provides “point-of-sale incentives that encourage EV deployment. These incentives will not go towards expensive luxury models and will also incentivize manufacturers who use good labor practices.”

The existing $7,500 EV tax credit applies to vehicles regardless of price but phases out after a manufacturer sells 200,000 EVs. Credits for both Tesla and General Motors expired after they hit the cap.

The White House has declined to say how Biden wants EV tax credits restructured or if he wants to hike credits.

Biden will argue that the United States is falling behind China on EVs. “Despite pioneering the technology, the United States is behind in the race to manufacture these vehicles and the batteries that go in them,” the White House says.

Biden faces resistance from many congressional Republicans on his EV focus. Republicans are set to release a counterproposal to Biden’s $2.3-trillion jobs and infrastructure plan as early as Tuesday.

Biden backs new tax credits for zero-emission medium- and heavy-duty vehicles, which the White House notes “are major contributors to poor air quality” and the administration pegs as costing $10 billion.

Biden wants $15 billion to build 500,000 EV charging stations by 2030 – including in apartment buildings and public parking – and $45 billion to electrify a significant number of school and transit buses. He also wants to fund shifting the federal fleet to more EVs, including for the Postal Service to begin using EV delivery trucks.

(Reporting by David Shepardson and Nandita Bose; editing by Richard Pullin and Nick Zieminski)

GM Profit Shrugs Off Chip Shortage with High-Priced Pickups, SUVs

By Nick Carey and Ben Klayman

The Detroit automaker, whose shares were up 3.3% in early trading, also said its full-year pre-tax profit would come in at the high end of its forecast.

“The speed and agility of our team are front and center as we move from managing through a pandemic to managing the global semiconductor shortage,” Chief Executive Mary Barra said in a letter to shareholders. “This remains a challenging period.”

Barra added the No. 1 U.S. automaker was focused on “maximizing production of high-demand and capacity-constrained vehicles” like the full-sized Chevrolet Silverado pickup, and GMC Yukon, Chevy Suburban and Cadillac Escalade SUVs.

Barra told reporters the chip shortage will worsen in the second quarter before improving in the second half of the year.

“Every region in the world has been dealing with the supply and demand imbalance for semiconductors, and we have been working through some significant disruptions to production,” she said.

GM reiterated its full-year 2021 earnings guidance and said “based on what we know today,” its results will be at the upper end of the $10 billion to $11 billion adjusted pre-tax profit it has previously forecast. Morgan Stanley analyst Adam Jonas said GM’s profit and full-year forecast were a relief after Ford Motor Co’s warning last week about the expected chip hit.

GM stuck to earlier forecasts the chip shortage could shave $1.5 billion to $2 billion from this year’s profits.

Carmakers across the world have had to curb output, hampering their attempts to recover from the COVID-19 pandemic, due to a shortage of vital chips used in everything from computer management of engines to driver assistance systems.

Stellantis, created from the merger of PSA and Fiat Chrysler, on Wednesday said it expects the shortage to take a bigger bite out of second-quarter production and warned the disruption could last into 2022.

Ford said last week it expects second-quarter vehicle output to be halved by the shortage.

Evercore ISI analyst Chris McNally asked in a research note why Ford was potentially expecting a bigger second-quarter production hit than GM, which he joked stood for “Good Morning” after the strong results.

Thanks to high consumer demand that has pushed up prices, focusing on those high-margin models contributed $3.2 billion to GM’s first-quarter pre-tax profit.

While GM has continued to build its highest-profit vehicles, it has hoarded supplies of chips by idling other factories. Last week, it extended downtime for plants in Kansas and Ontario into early July and late June, respectively, curtailing output of the Cadillac XT4 and Chevy Equinox SUVs, and the Chevy Malibu sedan.

GM posted a first-quarter net profit of $3 billion, or $2.03 per share, up from $294 million or 17 cents per share, a year earlier. Excluding items, it earned $2.25 per share, well above analyst expectations of $1.04.

GM said its capital spending budget this year will be $9 billion to $10 billion, and Barra said about $7 billion of that would be focused on electric and autonomous vehicle development.

(Reporting by Nick Carey, editing by Nick Zieminski and Steve Orlofsky)

Earnings to Watch Next Week: ON Semiconductor, Ferrari, General Motors and Moderna in Focus

Earnings Calendar For The Week Of May 3

Monday (May 3)

IN THE SPOTLIGHT: ON SEMICONDUCTOR

ON Semiconductor, a semiconductors supplier company, is expected to report its first-quarter earnings of $0.34 per share, which represents year-over-year growth of over 240% from $0.10 per share seen in the same quarter a year ago.

The Phoenix, Arizona-based company’s revenue would grow over 14% to $1.4 billion.

“The company is the only one in our coverage to see weaker gross margins cycle to cycle. Notably, this is happening despite an improvement in end-market mix toward industrial and autos and away from consumer and computing, where ON has become more selective in recent quarters,” noted Craig Hettenbach, equity analyst at Morgan Stanley.

“We like the message from the new CEO of improving mix of the business but think this has already been reflected in meaningful multiple expansion in the stock. Another thing to consider is the potential for lost revenue as the company deemphasizes some products.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 3

Ticker Company EPS Forecast
ENBL Enable Midstream Partners $0.17
EL Estée Lauder $1.28
WEC Wisconsin Energy $1.47
EPD Enterprise Products Partners $0.50
ON ON Semiconductor $0.34
ITRI Itron $0.40
ALXN Alexion Pharmaceuticals $3.08
L Loews $0.95
CNA CNA Financial $0.95
EPRT Essential Properties Realty Trust Inc $0.29
VRNS Varonis Systems -$0.13
QGEN Qiagen $0.63
RMBS Rambus $0.28
WWD Woodward $0.82
REGI Renewable Energy $0.20
IRBT Irobot $0.06
SCI Service International $0.98
ITUB Itau Unibanco $0.12
FN Fabrinet $1.15
CAR Avis Budget -$2.38
JKHY Jack Henry Associates $0.86
O Realty Ome $0.85
BRX Brixmor Property $0.40
UE Urban Edge Properties $0.22
AWK American Water Works $0.73
NSP Insperity $1.56
APO Apollo Global Management $0.59
RBC Regal Beloit Corporation $1.68
ADC Agree Realty $0.83
CR Crane $1.31
OGS One Gas $1.78
CHGG Chegg $0.31
CVI CVR Energy -$1.23
OHI Omega Healthcare Investors $0.82
XPO XPO Logistics $0.93
FLS Flowserve $0.20
CBT Cabot $0.97
LEG Leggett & Platt $0.41
FANG Diamondback Energy $1.89
SHO Sunstone Hotel Investors -$0.15
KMT Kennametal $0.21
SEDG Solaredge Technologies Inc $1.01
VNO Vornado Realty $0.63
WMB Williams Companies $0.28
AWR American States Water $0.48
MWA Mueller Water Products $0.14
MOS Mosaic $0.50
CC Chemours Co $0.68
LGND Ligand Pharmaceuticals $1.05
CORT Corcept Therapeutics $0.21
CIB Bancolombia $0.34
SANM Sanmina $0.82
EGOV NIC $0.24
AMG Affiliated Managers $4.24

Tuesday (May 4)

IN THE SPOTLIGHT: FERRARI

Ferrari, an Italian luxury sports car manufacturer, is expected to report its first-quarter earnings of $1.26 per share, which represents year-over-year growth of over 27% from $0.99 per share seen in the same quarter a year ago.

The company which is known for its prancing horse logo would post revenue growth of more than 24% to around $1.27 billion

“We find the long-term stability of Ferrari’s revenue, addressable market growth, expansive profit margin, and solid returns on invested capital throughout economic cycles to be compelling reasons to invest at the right price,” noted Richard Hilgert, senior equity analyst at Morningstar.

“Because of its exclusive clientele of high-net-worth individuals, we believe the company will show resiliency during periods of economic uncertainty, such is currently the case with the coronavirus pandemic. While we are not entirely averse to paying up for stocks like Ferrari that possess a wide economic moat and stable economic profits through business cycles, we think Ferrari stock will regularly trade at rich, luxury goods valuation multiples.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 4

Ticker Company EPS Forecast
ARNC Arconic Inc $0.29
CMI Cummins $3.46
CVS CVS Health $1.71
MPLX MPLX $0.61
PFE Pfizer $0.79
SYY Sysco $0.20
TRI Thomson Reuters USA $0.40
MPC Marathon Petroleum -$0.72
NS NuStar Energy $0.28
BR Broadridge Financial Solutions $1.67
ETRN Equitrans Midstream Corp $0.19
DD DuPont $0.77
LDOS Leidos $1.49
D Dominion Resources $1.08
EXPD Expeditors International Of Washington $1.00
RACE Ferrari $1.26
LPX Louisiana Pacific $2.67
CVLT Commvault Systems $0.49
ZBH ZIMMER BIOMET HDG. $1.51
UAA Under Armour Inc $0.04
XYL Xylem $0.37
UA Under Armour C share $0.04
INGR Ingredion $1.62
SEE Sealed Air $0.71
INCY YTE $0.65
BERY Berry Plastics $1.31
LGIH LGI Homes $2.37
BG Bunge $1.55
PCRX Pacira $0.58
RGEN Repligen $0.43
VSH Vishay Intertechnology $0.45
LANC Lancaster Colony $1.26
CTLT Catalent $0.76
KKR KKR & Co LP $0.62
CWH Camping World Holdings $0.54
RHP Ryman Hospitality Properties -$0.78
AME Ametek $1.02
WLK Westlake Chemical $1.56
IAA IAA Inc $0.46
VMC Vulcan Materials $0.41
GPN Global Payments $1.77
IPGP IPG Photonics $1.07
HSIC Henry Schein $0.83
IT Gartner $1.01
CRL Charles River Laboratories $2.19
HEP Holly Energy Partners $0.48
NXST Nexstar Broadcasting $3.11
MLM Martin Marietta Materials $0.51
LAMR Lamar Advertising $1.17
IDXX Idexx Laboratories $1.72
FSS Federal Signal $0.33
MIC Macquarie Infrastructure $0.48
NNN National Retail Properties $0.64
SABR Sabre -$0.51
MYGN Myriad Genetics -$0.10
BEN Franklin Resources $0.74
ZBRA Zebra Technologies $4.41
COP ConocoPhillips $0.57
ETN Eaton $1.25
HI Hillenbrand $0.92
CMP Compass Minerals International $0.72
VRSK Verisk Analytics $1.25
JBGS JBG SMITH Properties $0.31
LYFT Lyft Inc -$0.54
AMCR Amcor PLC $0.18
LSI LIFE STORAGE $1.01
STAG STAG Industrial $0.48
XP XP Inc $0.20
RPAI Retail Properties Of America $0.20
OUT Outfront Media -$0.17
MANT ManTech International $0.83
MED Medifast $2.72
PAYC Paycom Software $1.42
AKAM Akamai $1.30
LSCC Lattice Semiconductor $0.19
ARWR Arrowhead Research $0.34
AFG American Financial $1.74
TTEC TeleTech $1.00
ANET Arista Networks $2.38
GMED Globus Medical $0.36
INSP Inspire Medical Systems Inc -$0.65
ENLC EnLink Midstream -$0.02
IOSP Innospec $1.02
PVG Pretium Resources $0.21
HLF Herbalife $1.06
RDN Radian $0.67
TMUS T-Mobile Us $0.53
ESE ESCO Technologies $0.55
HST Host Hotels & Resorts -$0.15
PKI PerkinElmer $3.03
BKH Black Hills $1.60
ATVI Activision Blizzard $0.69
XLNX Xilinx $0.75
WTS Watts Water Technologies $0.98
AMRC Ameresco $0.10
CZR Caesars Entertainment -$1.77
MCY Mercury General $1.25
MRCY Mercury Systems $0.63
CPK Chesapeake Utilities $1.83
AIZ Assurant $1.96
LPSN LivePerson -$0.14
DOOR Masonite International $1.78
PXD Pioneer Natural Resources $1.82
EQC Equity Commonwealth $0.01
PEAK Healthpeak Properties Inc $0.39
DVN Devon Energy $0.35
RNG RingCentral $0.25
EPAY Bottomline Technologies $0.27
MTCH Match Group $0.46
JAZZ Jazz Pharmaceuticals $3.69
PRU Prudential Financial $2.68
NMIH NMI $0.59
DLB Dolby Laboratories $0.67
HASI Hannon Armstrong Sustnbl Infrstr Cap $0.40
MPWR Monolithic Power Systems $1.33
H Hyatt Hotels -$1.33
WU Western Union $0.45
DEI Douglas Emmett $0.43
EXAS Exact Sciences -$1.04
ALGT Allegiant Travel -$2.59
PTCT PTC Therapeutics -$1.59
Z Zillow $0.26
NRZ New Residential Investment $0.34
LITE Lumentum Holdings Inc $1.42
SU Suncor Energy USA $0.44
MELI MercadoLibre $0.40
HAE Haemonetics $0.67
TDG TransDigm $2.52
IOVA Iovance Biotherapeutics -$0.48
QTRX Quanterix -$0.32
VST Victory Square Tech -$2.04
GRFS Grifolsbarcelona $0.23
BBD Banco Bradesco $0.11
CHT Chunghwa Telecom $0.33

Wednesday (May 5)

IN THE SPOTLIGHT: GENERAL MOTORS

The auto manufacturer is expected to report its first-quarter earnings of $1.02 per share, which represents year-over-year growth of over 64% from $0.62 per share seen in the same quarter a year ago. The Detroit, Michigan-based company would post revenue growth of about 2% to around $33.3 billion.

“We are Overweight based on GM’s diversified portfolio, with multiple ways for GM to enhance shareholder value, through: EVs, ICE and Autonomy. GM also has leading North American margins, generates strong cash flow, and has a robust balance sheet,” noted Adam Jonas, equity analyst at Morgan Stanley.

“We believe that the market is underestimating the SOTP of the GM enterprise via: 1) Legacy ICE, 2) GM EV, 3) GM’s Ultium Battery business, 4) China JVs, 5) GM Finco, 6) GM Cruise, 7) hidden franchise value in brands such as Corvette and 8) GM Connected Services. GM management has a proven track record to allocate capital away from structurally challenged areas towards re-positioning the business model.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 5

Ticker Company EPS Forecast
UTHR United Therapeutics $2.60
HLT Hilton Worldwide $0.05
PNW Pinnacle West Capital $0.28
CERN Cerner $0.74
HFC HollyFrontier -$0.45
ODP Office Depot $1.02
AEIS Advanced Energy Industries $1.27
OMI Owens Minor $0.97
DNB Dun & Bradstreet $0.21
SMG Scotts Miracle-Gro $5.51
DOC Physicians Realty $0.27
WRK WESTROCK $0.62
GOLD Randgold Resources $0.26
TT Trane Technologies PLC $0.62
CIM Chimera Investment $0.31
SRE Sempra Energy $2.60
NYT New York Times $0.15
AVA Avista $0.85
ROCK Gibraltar Industries $0.61
SPR Spirit AeroSystems -$0.93
PEG Public Service $1.12
BWA Borgwarner $0.92
GM General Motors $1.02
JLL Jones Lang LaSalle $0.58
SBGI Sinclair -$2.18
EMR Emerson Electric $0.90
NI NiSource $0.77
ABC AmerisourceBergen $2.50
BRKR Bruker $0.32
FUN Cedar Fair -$1.89
IONS Ionis Pharmaceuticals -$0.47
EXC Exelon $0.42
WAT Waters $1.57
CDW CDW $1.54
CRTO Criteo $0.50
CLH Clean Harbors $0.26
HZNP Horizon Pharma $0.19
SPWR SunPower $0.00
FLEX Flextronics International $0.36
BKNG Booking Holdings Inc -$7.26
QLYS Qualys $0.69
ATO Atmos Energy $2.05
ALL Allstate $3.85
GIL Gildan Activewear USA $0.20
KLIC Kulicke And Soffa Industries $1.20
PTVE Pactiv Evergreen $0.03
LNC Lincoln National $1.48
TTGT TechTarget $0.37
RLJ RLJ Lodging -$0.26
ADPT Adeptus Health -$0.41
PRI Primerica $2.38
ZNGA Zynga $0.09
UNM Unum $1.01
HPP Hudson Pacific Properties $0.46
RUN Sunrun Inc -$0.03
WTRG Essential Utilities Inc $0.66
EPR EPR Properties $0.44
FLT Fleetcor Technologies $2.70
QRVO Qorvo $2.44
UGI UGI $1.72
CDAY Ceridian HCM Holding Inc $0.09
CW Curtiss-Wright $1.30
FMC FMC $1.52
CTSH Cognizant Technology Solutions $0.94
SIMO Silicon Motion Technology $0.94
AEL American Equity Investment Life $0.59
ANSS Ansys $0.85
MET MetLife $1.48
XEC Cimarex Energy $1.70
VAC Marriottacations Worldwide -$0.29
SRC Spirit Realty Capital New $0.73
TNDM Tandem Diabetes Care -$0.15
SJI South Jersey Industries $1.19
EQT EQT $0.28
ETSY ETSY Inc $0.84
MFC Manulife Financial USA $0.59
NBIX Neurocrine Biosciences $0.46
CCMP Cabot Microelectronics $1.94
EQH AXA Equitable Holdings Inc $1.23
MRO Marathon Oil $0.14
CF CF Industries $0.57
STN Stantec USA $0.42
RYN Rayonier $0.08
RSG Republic Services $0.86
FRT Federal Realty Investment $1.02
PDCE PDC Energy $0.83
PYPL PayPal $1.01
BFAM Bright Horizons Family Solutions $0.10
BE Bloom Energy Corp -$0.08
LBTYA Liberty Global Class A Ordinary Shares $0.09
HR Healthcare Realty $0.42
MTG MGIC Investment $0.42
NUVA NuVasive $0.33
ALB Albemarle $0.79
STAA STAAR Surgical $0.02
CPA Copa -$2.21
NUS Nu Skin Enterprises $0.72
TWO Two Harbors Investment $0.21
ACAD Acadia Pharmaceuticals -$0.54
RCII Rent-A-Center $1.11
LOPE Grand Canyon Education $1.67
ORA Ormat Technologies $0.40
KW Kennedy Wilson $0.27
LHCG LHC $1.26
SLF Sun Life Financial USA $1.08
FOXA Twenty-First Century Fox $0.57
FNV Franco Nevada $0.79
QTWO Q2 $0.07
UBER Uber -$0.56
SBRA Sabra Health Care Reit $0.40
RKT Rocket Cos. Inc. $0.89
MDU MDU Resources $0.20
TRMB Trimble Navigation $0.56
GDOT Green Dot $0.93
APA Apache $0.69
HUBG HUB $0.46
KAI Kadant $1.36
SBH Sally Beauty $0.16
BCH Banco De Chile $0.40
DAR Darling Ingredients $0.56
RARE Ultragenyx Pharmaceutical -$1.25
TRNO Terreno Realty $0.39
CCU Compania Cervecerias Unidas $0.32
CENTA Central Garden Pet $1.08
RCKT Rocket Pharma -$0.77
CUB Cubic $0.41
AVNS Avanos Medical Inc $0.18
FMS Fresenius Medical Care $0.45
UGP Ultrapar Participacoes $0.04
ELP Companhia Paranaense De Energia $0.03
LBTYK LIBERTY GLOBAL $0.09
FOX Twenty First Century Fox $0.58
NVO Novo Nordisk A Fs $0.79
BAK Braskem $1.38
AEBZY Anadolu Efes ADR $0.01
OMVJF OMV $0.97
SRPT Sarepta Therapeutics -$2.01
VIV Telefonica Brasil $0.13
ES Eversource Energy $1.10
GBT BMTC Group -$1.02

Thursday (May 6)

IN THE SPOTLIGHT: MODERNA

Moderna Inc, an American biotech company focused on drug discovery, is expected to report its first-quarter earnings of $2.36 per share, up about 700% from the same quarter a year ago. The Massachusetts-based biotechnology company’s revenue would surge to $1.97 billion.

“We are Equal-weight Moderna. While we believe there is long-term upside for Moderna, we believe the significant valuation increase associated with the success of the COVID-19 vaccine limits the near-term upside,” noted Matthew Harrison, equity analyst at Morgan Stanley.

“The company has taken an industrialized approach to developing mRNA-based therapeutics and has rapidly generated a broad pipeline of 21 programs, 11 of which have entered clinical development. We believe Moderna’s mRNA drug development platform is more diversified and scalable compared with competitors and is validated through broad partnerships with Merck and AstraZeneca. We see vaccines and rare diseases as the key valuation drivers of the company.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 6

Ticker Company EPS Forecast
PZZA Papa John’s International $0.55
AY Atlantica Yield -$0.13
SUN Sunoco $0.69
TECH Bio Techne $1.50
ZTS Zoetis $1.04
EPAM EPAM Systems $1.69
APTV Aptiv PLC $0.77
MGA Magna International USA $1.59
VER VEREIT $0.78
WCC Wesco International $0.76
BUD Anheuser-Busch $0.48
IRM Iron Mountain $0.64
LIN Linde PLC $2.26
BDX Becton, Dickinson and Co. $3.04
AES AES $0.31
BLD TopBuild Corp $1.93
HWM Howmet Aerospace Inc $0.20
BIP Brookfield Infrastructure $0.87
PENN Penn National Gaming $0.28
K Kellogg $0.95
PWR Quanta Services $0.74
BLL Ball $0.67
STWD Starwood Property $0.51
SEAS SeaWorld Entertainment -$0.83
CNP CenterPoint Energy $0.50
ALE Allete $1.11
WD Walker & Dunlop $2.01
COMM CommScope $0.31
PRLB Proto Labs $0.37
VG Vonage $0.05
AMRS Amyris -$0.16
BKI Black Iron Inc. $0.51
PBH Prestige Brands $0.79
W Wayfair Inc. $0.27
REGN Regeneron Pharmaceuticals $8.79
NSIT Insights $1.44
FIS Fidelity National Information Services $1.25
TRGP Targa Resources $0.15
EVOP EVO Payments Inc $0.12
CNQ Canadian Natural Resource USA $0.67
MUR Murphy Oil -$0.16
XRAY Dentsply International $0.55
IDCC InterDigital -$0.01
EVRG Evergy Inc $0.47
CAH Cardinal Health $1.57
EPC Edgewell Personal Care $0.62
THS TreeHouse Foods $0.35
STOR STORE Capital Corp $0.45
HAIN Hain Celestial $0.38
ADNT Adient PLC $0.59
MT Arcelormittal $1.57
OGE OGE Energy $0.18
NJR New Jersey Resources $1.17
MRNA Moderna Inc $2.36
BCRX BioCryst Pharmaceuticals -$0.26
FOCS Focus Financial Partners Inc $0.86
HII Huntington Ingalls Industries $2.52
IIVI Ii Vi $0.88
TPR Tapestry Inc $0.30
ARW Arrow Electronics $2.27
BLDR Builders Firstsource $0.81
INSM Insmed -$1.02
BECN Beacon Roofing Supply $0.01
NWSA News Corp $0.06
XLRN Acceleron Pharma -$0.83
QDEL Quidel $4.87
IHRT Iheartmedia -$0.44
AL Air Lease $1.01
Y Alleghany $4.65
AVLR Avalara Inc -$0.11
ALTR ALTAIR ENGINEERING $0.20
SEM Select Medical $0.65
CGNX Cognex $0.35
LYV Live Nation Entertainment -$1.77
TDC Teradata $0.46
CABO Cable One Inc $10.22
KWR Quaker Chemical $1.51
APLE Apple Hospitality $0.03
CLNE Clean Energy Fuels $0.01
ICUI ICU Medical $1.53
MCHP Microchip Technology $1.74
MTX Minerals Technologies $1.07
PTON Peloton Interactive, Inc. -$0.11
ANGI Angie’s List -$0.04
ENV Envestnet $0.61
CDK Cdk Global $0.68
REG Regency Centers $0.75
AIG AIG $0.99
SQ Square $0.16
MSI Motorola Solutions Msi $1.62
RVLV Revolve $0.13
SFM Sprouts Farmers Market $0.62
OLED Universal Display $0.67
PODD Insulet $0.06
AMH American Homes 4 Rent $0.31
PK Park Hotels & Resorts Inc -$0.55
EXPE Expedia -$2.52
TRIP TripAdvisor -$0.31
LNT Alliant Energy $0.67
FOXF Fox Factory $0.82
HTA Healthcare Of America $0.43
EXEL Exelixis $0.05
POST Post $0.55
CSOD Cornerstone OnDemand $0.42
SYNA Synaptics $1.87
ED Consolidated Edison $1.36
DBX Dropbox $0.30
IRTC iRhythm Tech -$0.87
DRH DiamondRock Hospitality -$0.14
MCK McKesson $5.01
YELP Yelp -$0.26
DIOD Diodes $0.78
CWK Cushman & Wakefield plc -$0.04
RGA Reinsurance Of America $0.07
STMP Stamps $1.63
EOG EOG Resources $1.50
BAP Credicorp USA $2.37
AAON AAON $0.24
MTD Mettler Toledo International $5.65
PCTY Paylocity $0.66
BCC Boise Cascade $2.50
NFG National Fuel Gas $1.21
MTZ MasTec $0.77
TPL Texas Pacific Land $5.77
FNF Fidelity National Financial $1.28
PHI Philippine Long Distance Telephone $0.61
NWS News $0.05
CYRX Cryoport Inc -$0.21
PPL PPL $0.61
NRG NRG Energy $1.64
NKTR Nektar Therapeutics -$0.75
GLUU Glu Mobile $0.07
PLUG Plug Power -$0.08
MNST Monster Beverage $0.61
NTLA Intellia Therapeutics Inc -$0.66
CTRE CareTrust REIT $0.36
ADT ADT $0.15
ARNA Arena Pharmaceuticals -$2.19
SWX Southwest Gas $1.83
MIDD Middleby $1.63
MRTX Mirati Therapeutics -$2.13
JOBS 51job $0.43
PFSI Pennymac Financial Services $5.79
KRTX Karuna Therapeutics -$1.06
MGEE Mge Energy $0.81
ITCI Intra Cellular Therapies -$0.81
XNCR Xencor -$0.77
SATS EchoStar -$0.02
DRNA Dicerna Pharmaceuticals -$0.28
IGMS IGM Biosciences -$0.98
RVNC Revance Therapeutics -$1.19
PAR Par Technology -$0.37
ACIW ACI Worldwide -$0.12
AG First Majestic Silver $0.07
ING Ing Groep $0.23
GFI Gold Fields $0.64
ABEV Ambev $0.03
AGO Assured Guaranty $0.56
MMS Maximus $0.82

Friday (May 7)

Ticker Company EPS Forecast
CI Cigna $4.37
VTR Ventas $0.02
LEA Lear $2.95
MD Mednax $0.16
AMCX AMC Networks $2.01
ENB Enbridge USA $0.57
CCJ Cameco USA -$0.08
TRP Transcanada USA $0.87
LBRDK Liberty Broadband Lbrdk $1.10
SPB Spectrum Brands $0.99
LBRDA Liberty Broadband $0.85
ITT ITT $0.87
FLR Fluor New $0.04
ESNT Essent $1.22
UNVR Univar Solutions Inc $0.32
HE Hawaiian Electric Industries $0.36
RICOY Ricoh Company -$0.08
IBP Installed Building Products $1.04
TU Telus USA $0.23
SSUMY Sumitomo ADR -$0.02
CNK Cinemark -$1.47
CVE Cenovus Energy USA -$0.02
LXP Lexington Realty $0.03