Here's What to Watch at Auto Industry's Annual Deluge of News
(Bloomberg) -- The biggest week for the U.S. auto industry is now underway as investors, analysts and company executives descend upon Detroit to attend the N.A. International Auto Show, an event that is typically studded with new product announcements, commentaries and guidance.
The S&P Supercomposite Automobiles & Components Industry Index (S15AUCO) gained as much as 1.9 percent on Monday, while the broader S&P 500 Index (SPX) dropped as much as 1 percent.
Here’s a list of some of the most closely watched U.S. companies. All times are ET.
- Adient: Expected to provide 2019 guidance, with at least three analysts predicting it will be a negative catalyst.
- “We see downside to Adient’s margin, EPS, and FCF guidance, which will likely bake in conservatism in an effort to protect the credibility of DelGrosso’s new leadership regime,” KeyBanc analyst James Picariello wrote in a note.
- Presenting at Deutsche Bank conference on Jan. 16, 9:50-10:30 a.m.
- American Axle: Expected to “largely reiterate” 2019 guidance of flat to 2 percent sales growth.
- “We expect a neutral to moderately negative reaction to American Axle’s guidance,” Picariello said.
- Presenting at Wolfe on Jan. 15, 2:55-3:35 p.m., at Deutsche Bank on Jan. 16, 10:35-11:15 a.m.
- Aptiv: Expected to provide 2019 guidance.
- Presenting at Deutsche Bank on Jan. 16, 8:20-9 a.m., at Wolfe on Jan. 16, 3:05-3:45 p.m.
- Autoliv: “While ALV has already confirmed that it will wait until fourth-quarter earnings to provide its initial 2019 guidance, we do hope the company takes the opportunity in Detroit to address its current 2020 targets,” KeyBanc’s Picariello said.
- Presenting at Deutsche Bank on Jan. 16, 9:05-9:45 a.m., at Wolfe on Jan. 16, 10:25-11:05 a.m.
- Dana: “We see upward pressure on 2019 consensus estimates, as it appears many forecasts have not incorporated the Oerlikon acquisition into their numbers yet,” RBC analyst Joseph Spak said, adding that he expected the company to guide 2019 Ebitda in the range of $1.05 billion to $1.1 billion.
- Presenting at Wolfe on Jan. 15, 2:10-2:50 p.m., at Deutsche Bank on Jan. 16, 11:20-12 p.m.
- Delphi: Has already provided a preliminary 2019 outlook following third-quarter earnings.
- Presenting at Wolfe on Jan. 16, 11:10-11:50 a.m., at Deutsche Bank on Jan. 16, 1:10-1:50 p.m.
- Ford: After GM’s strong 2019 outlook announced last week, all eyes are on Ford, which is also expected to provide guidance for the year at the auto show, as well as a potential alliance with Volkswagen.
- “While there would be a focus on 2019 outlook, we believe their bigger focus could be on the go forward plan and a chance to dive in deeper on the recent European restructuring announcement,” RBC’s Spak said.
- “While we believe there could be further collaboration with VW on autonomous vehicles, capacity sharing in U.S., potentially some action in SA, and electric vehicle collaboration, we don’t believe this will all be announced at once. Rather, we expect a slow drip of news over the coming year,” Spak added.
- Presenting at Wolfe on Jan. 15, 4:25-5:25 p.m., at Automotive News World Congress (ANWC) on Jan. 15, 8-8:30 p.m., at Deutsche Bank on Jan. 16, 7:15-8:15 a.m., at ANWC again on Jan. 16, 9:45-10:15 a.m.
- General Motors: After the blowout 2019 guidance, investors and analysts will be looking for more detail on how the automaker plans to achieve the outlook.
- Presenting at Wolfe on Jan. 15, 11-11:45 a.m., at Deutsche Bank on Jan. 16, 12:15-1 p.m., at ANWC on Jan. 16, 8:15-8:45 p.m.
- Lear: Expected to provide guidance for 2019.
- “We expect a largely neutral reaction to Lear’s guidance, as we anticipate a tempered light vehicle production backdrop and significant reliance placed on Lear’s ability to generate strong second-half improvement, to weigh on upside potential,” KeyBanc’s Picariello said.
- Presenting at Wolfe on Jan. 15, 11:50 a.m.-12:30 p.m, at Deutsche Bank on Jan. 15, 2:05-2:45 p.m., at ANWC on Jan. 16, 3:30-4:15 p.m.
- Visteon: Expected to provide guidance for 2019.
- “All eyes will likely be on clarity towards management’s view for 2019 and its ability to hit its previously stated 2021 targets,” RBC’s Spak said, adding that “we believe both will disappoint.”
- “Management has stuck by its conviction that it can grow sales in 2019, but we believe its customer exposure makes that difficult,” the analyst added.
- Presenting at Deutsche Bank on Jan. 15, 11:50 a.m.-12:30 p.m., at Wolfe on Jan. 15, 3:40-4:20 p.m.
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