We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors (GM) Q1 Earnings Top Estimates, Revenues Lag
Read MoreHide Full Article
General Motors (GM - Free Report) reported adjusted earnings of $2.25 per share for first-quarter 2021, breezing past the Zacks Consensus Estimate of $1.02. Higher-than-anticipated profits from its North America and International units drove this outperformance. The bottom line was also significantly higher than the year-ago earnings of 62 cents per share amid cost-containment efforts, and robust demand for SUVs as well as pickups.
However, revenues of $32,474 million missed the Zacks Consensus Estimate of $33,260 million. Revenues also slipped from the year-ago figure of $32,709 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $4,417 million, significantly up from $1,250 million in the prior-year quarter. The upside can be attributed to the launch of SUVs, effective pricing on pickups and strong used-car prices.
The automaker’s market share in the GM market was 10.1% for the reported quarter, decreasing from the year-ago period’s 10.4%.
Segmental Performance
GM North America (GMNA) generated first-quarter net revenues of $25,957 million, up from $25,831 million recorded in the corresponding period of 2020. Also, revenues from the unit outpaced the Zacks Consensus Estimate of $23,811 million. While the region’s wholesale vehicle sales of 664,000 units declined from 775,000 units in the comparable year-ago quarter, the segment’s operating profit increased 42.8% to $3,134 million. The segmental profit also outpaced the consensus mark of $1,917 million. The results marked an improvement primarily owing to newly launched full-size SUVs, and improved pricing on pickups owing to tight inventory and high demand for the same.
GM International’s (GMI) net revenues for the reported quarter were $3,086 million, down from the year-ago quarter’s $3,280 million on lower year-over-year vehicle sales. The unit turned an operating profit of $308 million against the year-ago loss of $551 million and the consensus estimate of a loss of $42 million owing to strong pricing, vehicle launches and benefits from cost-containment actions.
GM Financial generated net revenues of $3,407 million for the March-end quarter, down from $3,561 million recorded in the year-ago period. Nonetheless, the segment recorded an operating profit of $1,182 million, jumping from $230 million witnessed in the prior-year quarter and beating the consensus mark of $871 million. This upswing resulted from the positive impact of high used-vehicle prices, strong credit performance and reduced interest expense.
GM Cruise witnessed net revenues of $30 million for the first quarter, up from $25 million reported in the year-earlier period. The segment posted an operating loss of $229 million compared with $228 million loss reported in the prior-year quarter.
Financial Position
General Motors — which shares space with other auto biggies including Ford (F - Free Report) , Tesla (TSLA - Free Report) and Volkswagen (VWAGY - Free Report) — had cash and cash equivalents of $21.6 billion as of Mar 31, 2021 compared with $19.9 billion at 2020-end. Long-term automotive debt at the end of the quarter under review was $16.4 billion compared with $16.2 billion as of Dec 31, 2020.
General Motors’ automotive liquidity amounted to $37.2 billion at the end of the January-March quarter. The company recorded adjusted negative automotive free cash flow (FCF) of $1.9 billion for first-quarter 2021, comparing unfavorably with negative FCF of $903 million in the prior-year period.
2021 View
The Zacks Rank #3 (Hold) company expects 2021 adjusted EBIT and EPS per share in the band of $10-$11 billion and $4.5-$5.25, respectively. Adjusted automotive FCF is envisioned between $1 billion and $2 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
General Motors (GM) Q1 Earnings Top Estimates, Revenues Lag
General Motors (GM - Free Report) reported adjusted earnings of $2.25 per share for first-quarter 2021, breezing past the Zacks Consensus Estimate of $1.02. Higher-than-anticipated profits from its North America and International units drove this outperformance. The bottom line was also significantly higher than the year-ago earnings of 62 cents per share amid cost-containment efforts, and robust demand for SUVs as well as pickups.
However, revenues of $32,474 million missed the Zacks Consensus Estimate of $33,260 million. Revenues also slipped from the year-ago figure of $32,709 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $4,417 million, significantly up from $1,250 million in the prior-year quarter. The upside can be attributed to the launch of SUVs, effective pricing on pickups and strong used-car prices.
The automaker’s market share in the GM market was 10.1% for the reported quarter, decreasing from the year-ago period’s 10.4%.
Segmental Performance
GM North America (GMNA) generated first-quarter net revenues of $25,957 million, up from $25,831 million recorded in the corresponding period of 2020. Also, revenues from the unit outpaced the Zacks Consensus Estimate of $23,811 million. While the region’s wholesale vehicle sales of 664,000 units declined from 775,000 units in the comparable year-ago quarter, the segment’s operating profit increased 42.8% to $3,134 million. The segmental profit also outpaced the consensus mark of $1,917 million. The results marked an improvement primarily owing to newly launched full-size SUVs, and improved pricing on pickups owing to tight inventory and high demand for the same.
GM International’s (GMI) net revenues for the reported quarter were $3,086 million, down from the year-ago quarter’s $3,280 million on lower year-over-year vehicle sales. The unit turned an operating profit of $308 million against the year-ago loss of $551 million and the consensus estimate of a loss of $42 million owing to strong pricing, vehicle launches and benefits from cost-containment actions.
GM Financial generated net revenues of $3,407 million for the March-end quarter, down from $3,561 million recorded in the year-ago period. Nonetheless, the segment recorded an operating profit of $1,182 million, jumping from $230 million witnessed in the prior-year quarter and beating the consensus mark of $871 million. This upswing resulted from the positive impact of high used-vehicle prices, strong credit performance and reduced interest expense.
GM Cruise witnessed net revenues of $30 million for the first quarter, up from $25 million reported in the year-earlier period. The segment posted an operating loss of $229 million compared with $228 million loss reported in the prior-year quarter.
Financial Position
General Motors — which shares space with other auto biggies including Ford (F - Free Report) , Tesla (TSLA - Free Report) and Volkswagen (VWAGY - Free Report) — had cash and cash equivalents of $21.6 billion as of Mar 31, 2021 compared with $19.9 billion at 2020-end. Long-term automotive debt at the end of the quarter under review was $16.4 billion compared with $16.2 billion as of Dec 31, 2020.
General Motors’ automotive liquidity amounted to $37.2 billion at the end of the January-March quarter. The company recorded adjusted negative automotive free cash flow (FCF) of $1.9 billion for first-quarter 2021, comparing unfavorably with negative FCF of $903 million in the prior-year period.
2021 View
The Zacks Rank #3 (Hold) company expects 2021 adjusted EBIT and EPS per share in the band of $10-$11 billion and $4.5-$5.25, respectively. Adjusted automotive FCF is envisioned between $1 billion and $2 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>