KeyBanc Bearish on Auto Industry as Earnings Likely to Miss
KeyBanc said automotive profitability trends should "remain intact" for the second quarter, but new vehicle volume lagged expectations and sent the full-year forecast down.
The analysts' full-year new car sales outlook for the industry is now between 17 million and 17.2 million, below the previous 17.5 million analyst average. Favorable trends in used car sales, products and services sectors will likely offset the weaker new volumes, though.
KeyBanc views consensus estimate for Q2 as too high and believes some full-year outlooks need to come down modestly as well. The analysts said they are most bearish on "sector weight" Asbury Automotive Group Inc (ABG) - Get Report and most bullish on "overweight" Lithia Motors Inc's (LAD) - Get Report full-year forecast.
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