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General Motors (GM) Beats on Q3 Earnings and Revenues

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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, weak sales volume in the U.S. is a concern. 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. In Aug 2016, General Motors’ subsidiary Opel announced that it will be reducing working hours at its plants in Ruesselsheim and Eisenach this year due to the sluggish demand for Corsa and Insignia models post Brexit.

Estimate Trend & Surprise History

Investors should note that the third-quarter earnings estimate for General Motors has inched up by a cent over the past 7 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 21.86%. As a result, investors have been eagerly awaiting General Motors’ latest earnings report.

GENERAL MOTORS Price and EPS Surprise

 

GENERAL MOTORS Price and EPS Surprise | GENERAL MOTORS Quote

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

General Motors’ adjusted earnings increased 14.7% to $1.72 per share in the third quarter of 2016, comfortably beating the Zacks Consensus Estimate of $1.44.

Revenues

General Motors reported record-high revenues of $42.8 billion, 10.3% higher than $38.8 billion reported in the year ago quarter. Revenues surpassed the Zacks Consensus Estimate of $40.09 billion.

Key Stats/Developments to Note

Based on the strong expectations for the second half of 2016, General Motors expects 2016 earnings per share to be close to the higher end of its guidance range of $5.50–$6.00. The outlook is significantly 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 has increased 1.55% in pre-market trading so far after the automaker released the third 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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