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GM (GM) Up 0.8% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for General Motors (GM - Free Report) . Shares have added about 0.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is GM due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

General Motors Q3 Earnings & Revenues Beat Estimates

General Motors reported third-quarter 2018 adjusted earnings per share of $1.87, up 41.7% from the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $1.26. The quarter witnessed robust performance across all new full-size trucks and crossovers in North America.

General Motors reported revenues of $35.8 billion, up 6.4% from the year-ago quarter figure. Further, revenues surpassed the Zacks Consensus Estimate of $34.2 billion.

During the last reported quarter, total sales for the wholesale unit increased to 1.13 million from 1.08 million in the third quarter of 2017. Worldwide retail unit sales decreased to 1.98 million from 2.32 million in the year-ago quarter. This automaker’s global market share was 8.6% during the reported quarter, reflecting a decline from 10% in the year-ago quarter.

Segment Results

GM North America (“GMNA”) generated net sales and revenues of $27.7 billion during the third quarter of 2018, up from $24.8 billion recorded in third-quarter 2017.

GM International’s (“GMI”) net sales and revenues were $4.6 billion, declining from $5.6 billion in the year-ago quarter.

GM Financial generated net sales and revenues of $3.5 billion during the quarter under review, reflecting an increase from $3.2 billion recorded in the year-ago quarter.

Financial Position

General Motors had cash and cash equivalents of $18.4 billion as of Sep 30, 2018, compared with $15.5 billion as of Dec 31, 2017.

Adjusted automotive free cash flow during the reported quarter was $396 million versus $1.2 billion of free cash used in the prior-year quarter.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

Currently, GM has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

GM has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.




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