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General Motors (GM) Beats on Q2 Earnings and Revenues
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General Motors Company (GM - Free Report) is a leading global automotive company in the U.S. General Motors is focused on investment in innovative technologies and vehicles which should provide sustained growth while maximizing shareholder value. In Jun 2016, General Motors announced an investment worth $290 million in its Bowling Green Assembly plant to improve and revamp the facility’s vehicle assembly operations with new technologies and processes. These improvements will help enhance the quality of vehicles produced. The company is also gaining new contracts to expand its business. In Jul 2016, the company and ride-hailing company Lyft Inc. expanded their short-term rental program Express Drive to California and Colorado.
However, General Motors is facing a challenging situation due to a delay in the recall of 2.6 million vehicles with defective ignition switches. Recently, a federal appeals court ruled that the automaker cannot use the 2009 bankruptcy as an excuse to defend itself against lawsuits over defective ignition switches. This ruling has exposed the company to several additional liabilities. The automaker also recorded decline in U.S. sales in the first half of 2016. Moreover, General Motors was forced to scale down or shut its manufacturing operations in some regions due to production constraints such as high costs and unfavorable currency translation effects.
Estimate Trend & Surprise History
Investors should note that the second-quarter earnings estimate for General Motors has decreased by 3 cents to $1.47 over the past 30 days.
General Motors has delivered positive earnings surprises in the past. It surpassed the Zacks Consensus Estimate in all the trailing 4 quarters with an average beat of around 21.13%. Thus, investors have been eagerly awaiting General Motors’ latest earnings report.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings
General Motors adjusted earnings increased 44% to $1.86 per share in the second quarter of 2016, significantly beating the Zacks Consensus Estimate of $1.48.
General Motors reported revenues of $42.4 billion, 11% higher than $38.2 billion recorded in the year ago quarter. Revenues surpassed the Zacks Consensus Estimate of $39.1 billion.
Key Stats/Developments to Note
Based on the strong financial performance in the first half of 2016, General Motors expects 2016 earnings per share in the range of $5.50–$6.00, higher from previous forecast of $5.25–$5.75 and also higher than $5.02 recorded in 2015.
Zacks Rank
Currently, General Motors has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released.
Market Reaction
General Motors’ share price increased 5.72% to $33.29 in pre-market trading after the automaker released the second quarter results. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on General Motors’ earnings report!
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General Motors (GM) Beats on Q2 Earnings and Revenues
General Motors Company (GM - Free Report) is a leading global automotive company in the U.S. General Motors is focused on investment in innovative technologies and vehicles which should provide sustained growth while maximizing shareholder value. In Jun 2016, General Motors announced an investment worth $290 million in its Bowling Green Assembly plant to improve and revamp the facility’s vehicle assembly operations with new technologies and processes. These improvements will help enhance the quality of vehicles produced. The company is also gaining new contracts to expand its business. In Jul 2016, the company and ride-hailing company Lyft Inc. expanded their short-term rental program Express Drive to California and Colorado.
However, General Motors is facing a challenging situation due to a delay in the recall of 2.6 million vehicles with defective ignition switches. Recently, a federal appeals court ruled that the automaker cannot use the 2009 bankruptcy as an excuse to defend itself against lawsuits over defective ignition switches. This ruling has exposed the company to several additional liabilities. The automaker also recorded decline in U.S. sales in the first half of 2016. Moreover, General Motors was forced to scale down or shut its manufacturing operations in some regions due to production constraints such as high costs and unfavorable currency translation effects.
Estimate Trend & Surprise History
Investors should note that the second-quarter earnings estimate for General Motors has decreased by 3 cents to $1.47 over the past 30 days.
General Motors has delivered positive earnings surprises in the past. It surpassed the Zacks Consensus Estimate in all the trailing 4 quarters with an average beat of around 21.13%. Thus, investors have been eagerly awaiting General Motors’ latest earnings report.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings
General Motors adjusted earnings increased 44% to $1.86 per share in the second quarter of 2016, significantly beating the Zacks Consensus Estimate of $1.48.
GENERAL MOTORS Price and EPS Surprise
GENERAL MOTORS Price and EPS Surprise | GENERAL MOTORS Quote
Revenues
General Motors reported revenues of $42.4 billion, 11% higher than $38.2 billion recorded in the year ago quarter. Revenues surpassed the Zacks Consensus Estimate of $39.1 billion.
Key Stats/Developments to Note
Based on the strong financial performance in the first half of 2016, General Motors expects 2016 earnings per share in the range of $5.50–$6.00, higher from previous forecast of $5.25–$5.75 and also higher than $5.02 recorded in 2015.
Zacks Rank
Currently, General Motors has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released.
Market Reaction
General Motors’ share price increased 5.72% to $33.29 in pre-market trading after the automaker released the second quarter results. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on General Motors’ earnings report!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>