Back to top

Image: Bigstock

General Motors (GM) Q1 Earnings and Revenues Top Estimates

Read MoreHide Full Article

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.

However, falling sales volume in the U.S. and increasing recalls are concerns. The company is also facing challenges in Venezuela.

Estimate Trend & Surprise History

Investors should note that the first-quarter earnings estimate for General Motors has inched up by a penny over the last week.

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 19.71%. 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:

General Motors Company Price and EPS Surprise

 

General Motors Company Price and EPS Surprise | General Motors Company Quote

Earnings

General Motors’ adjusted earnings increased 34.9% to a first-quarter record of $1.70 per share in the first quarter of 2017, comfortably beating the Zacks Consensus Estimate of $1.45.

Revenues

General Motors reported revenues of $41.2 billion, 10.6% higher than $37.3 billion reported in the year ago quarter. Revenues also surpassed the Zacks Consensus Estimate of $40.25 billion.

Key Stats/Developments to Note

General Motors continues to expect 2017 adjusted earnings per share in the range of $6.00−$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. The company aims capital deployment of $7 billion to shareholders in 2017.

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 has increased 1.6% in pre-market trading so far after the automaker released the first quarter results. Clearly, the initial reaction to the report is positive.

Check back later for our full write up on General Motors’ earnings report!

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


General Motors Company (GM) - free report >>

Published in