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General Motors (GM) Beats on Q4 Earnings, Shares Rise
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General Motors Company (GM - Free Report) is a leading global automotive company based in the U.S. The automaker is focused on investment in innovative technologies and vehicles which should provide sustained growth while maximizing shareholder value. The company is also gaining new contracts to expand its business. Moreover, General Motors is witnessing record sales volume in China.
However, falling sales volume in the U.S. is a concern. Moreover, General Motors is still facing various issues for delaying the recall of 2.6 million vehicles with defective ignition switches. The company is also facing challenges in Venezuela.
Estimate Trend & Surprise History
Investors should note that the fourth-quarter earnings estimate for General Motors has inched down by 2 cents over the past 60 days.
General Motors has delivered positive earnings surprises in the past. It surpassed the Zacks Consensus Estimate in each of the trailing 4 quarters with an average beat of around 19.67%. As a result, 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 decreased 7.9% to $1.28 per share in the fourth quarter of 2016, comfortably beating the Zacks Consensus Estimate of $1.14.
Revenues
General Motors reported revenues of $43.9 billion, 10.8% higher than $39.6 billion reported in the year ago quarter. Revenues surpassed the Zacks Consensus Estimate of $42.20 billion.
Key Stats/Developments to Note
General Motors expects 2017 adjusted earnings per share in the range of $6.00 to $6.50, compared with the 2016 figure of $6.12. The automaker also expects adjusted EBIT and adjusted EBIT margin to remain stable or improve, while revenues are projected to rise from 2016. Further, the automaker is expected to generate around $6 billion in adjusted automotive free cash flow.
Zacks Rank
Currently, General Motors has a Zacks Rank #2 (Buy), but that could change following its earnings report which has just released.
Market Reaction
General Motors’ share price has increased 1.55% in pre-market trading so far after the automaker released the fourth quarter results. Clearly, the initial reaction to the report is positive.
Check back later for our full write up on General Motors’ earnings report!
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General Motors (GM) Beats on Q4 Earnings, Shares Rise
General Motors Company (GM - Free Report) is a leading global automotive company based in the U.S. The automaker is focused on investment in innovative technologies and vehicles which should provide sustained growth while maximizing shareholder value. The company is also gaining new contracts to expand its business. Moreover, General Motors is witnessing record sales volume in China.
However, falling sales volume in the U.S. is a concern. Moreover, General Motors is still facing various issues for delaying the recall of 2.6 million vehicles with defective ignition switches. The company is also facing challenges in Venezuela.
Estimate Trend & Surprise History
Investors should note that the fourth-quarter earnings estimate for General Motors has inched down by 2 cents over the past 60 days.
General Motors has delivered positive earnings surprises in the past. It surpassed the Zacks Consensus Estimate in each of the trailing 4 quarters with an average beat of around 19.67%. As a result, investors have been eagerly awaiting General Motors’ latest earnings report.
General Motors Company Price and EPS Surprise
General Motors Company Price and EPS Surprise | General Motors Company Quote
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings
General Motors’ adjusted earnings decreased 7.9% to $1.28 per share in the fourth quarter of 2016, comfortably beating the Zacks Consensus Estimate of $1.14.
Revenues
General Motors reported revenues of $43.9 billion, 10.8% higher than $39.6 billion reported in the year ago quarter. Revenues surpassed the Zacks Consensus Estimate of $42.20 billion.
Key Stats/Developments to Note
General Motors expects 2017 adjusted earnings per share in the range of $6.00 to $6.50, compared with the 2016 figure of $6.12. The automaker also expects adjusted EBIT and adjusted EBIT margin to remain stable or improve, while revenues are projected to rise from 2016. Further, the automaker is expected to generate around $6 billion in adjusted automotive free cash flow.
Zacks Rank
Currently, General Motors has a Zacks Rank #2 (Buy), but that could change following its earnings report which has just released.
Market Reaction
General Motors’ share price has increased 1.55% in pre-market trading so far after the automaker released the fourth quarter results. Clearly, the initial reaction to the report is positive.
Check back later for our full write up on General Motors’ earnings report!
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>