By: Brendan Gilmartin, VP Research & Content
The leading automakers are scheduled to report monthly sales on Wednesday, May 1.
Summary: The top automakers are scheduled to report April 2013 auto sales on Wednesday May 1. According to a report on TrueCar.com, sales are expected to top the 15-million mark for the sixth straight month, thanks to solid consumer demand. Meanwhile, Edmunds.com says it's projecting its strongest April in six years, with sales rising to pre-recession levels. Despite forecasts for stellar year/year sales growth, comparisons to March 2013 are expected to show a decline, due in part to reduced incentives and seasonality. Nevertheless, General Motors (NYSE:GM) is at a 52-week high ahead of the release, while Ford Motor (NYSE:F) is within earshot of its 1-year apex, suggesting the market may have already priced in a strong report.
Ford Motor Expected Release Time: 9:30 a.m. EST
Overview: Ford shares are within earshot of a 52-week high and expected to deliver a strong y/y comp, thanks to a recent uptick in small business demand along with a slight drop in gasoline prices over recent weeks. Furthermore, Kelley Blue Book is predicting Ford will deliver solid double-digit sales gains thanks to solid demand for the Fusion and Focus models.
TrueCar.com: 17.2% (Source: Truecar.com)
Edmunds.com: 16.2% (Source: Edmunds.com)
Kelley Blue Book: 15.3% (Source: KBB.com)
Technical Review: Ford is creeping back toward the 52-week high of $14.30 (1/15) after clearing resistance at $13.50, a level that now becomes near-term support in the event of a miss on monthly sales, with downside risk to $12.75. Resistance is at the aforementioned high above $14.00 on an expected surge in April sales. (Chart courtesy of StockCharts.com)
General Motors Expected Release Time: 10:00 a.m. EST
Overview: General Motors shares are at a 52-week high ahead of the April sales report, expected to show a 10% - 12% increase in April sales, thanks to improving credit conditions, a boost in consumer sentiment, high trade-in values, and a slight drop in fuel prices.
TrueCar.com: 10.2% (Source: Truecar.com)
Edmunds.com: 11.5% (Source: Edmunds.com)
Kelley Blue Book: 12.0% (Source: KBB.com)
Technical Review: GM shares recently broke out to a 52-week high, eclipsing the previous peak established in January. But with the shares up more than 10% over the past several weeks and the Relative Strength Index now hovering near the 70-level, the market is pricing in a strong April sales report. Anything less would be seen as a disappointment given the run-up in the shares. (Chart courtesy of StockCharts.com)
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.