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 Beat on Solid GMNA Segment
Read MoreHide Full Article
General Motors (GM - Free Report) reported adjusted earnings of 62 cents per share in first-quarter 2020, surpassing the Zacks Consensus Estimate of 18 cents. Stronger-than-expected contribution from the North American segment led to the outperformance. However, the bottom line declined 56% from the year-ago figure of $1.41 a share.
The top U.S. carmaker reported revenues of $32,709 million, topping the Zacks Consensus Estimate of $32,587 million. However, the top line decreased from the year-ago figure of $34,878 million.
The automaker’s global market share was 7.9% in the reported quarter, reflecting a decline from 8.3% in the year-ago period.
Another U.S. auto biggie Tesla (TSLA - Free Report) also delivered an earnings beat despite coronavirus woes. In contrast, Ford (F - Free Report) and Fiat Chrysler not only missed earnings estimates but also incurred net loss in the first quarter of 2020.
General Motors Company Price, Consensus and EPS Surprise
GM North America (GMNA) generated first-quarter 2020 net revenues of $25,831 million, down from $27,365 million recorded in the corresponding period of 2019. Nonetheless, revenues from the GMNA unit outpaced the Zacks Consensus Estimate of $24,981 million. Vehicle sales came in at 775,000 units, reflecting a year-over-year decrease of 9.7%. Profits from the segment rose to $2,194 million from the year-ago level of $1,896 million. The metric also surpassed the consensus mark of $1,577 million. Strong sales of light-duty pickups and SUVs, along with cost-cut efforts led to improved year-over-year profits.
GM International’s (GMI) net revenues were $3,280 million, which declined from $3,850 million in the year-ago quarter. However, revenues from the GMI segment topped the Zacks Consensus Estimate of $3,147 million. Vehicle sales came in at 191,000 units, reflecting a year-over-year decrease of 19%. The unit recorded an operating loss of $551 million against a profit of $31 million a year ago. Sagging vehicle sales in China amid economic slowdown and the COVID-19 pandemic negatively impacted the segment.
GM Financial generated net revenues of $3,561 million in the quarter under review, down from $3,620 million recorded in the year-ago period. The segment recorded operating profit of $230 million, representing a decline from $359 million recorded in the prior year quarter. Increase in loan loss reserve related to coronavirus acted as a dampener.
GM Cruise generated net revenues of $25 million in first-quarter 2020. The segment reported operating loss of $228 million, wider than $169-million loss in the prior-year quarter.
Financials
General Motors had cash and cash equivalents of $38.5 billion as of Mar 31, 2020 compared with $19.1 billion as of Dec 31, 2019. Long-term automotive debt stands at $28.6 billion compared with $12.5 billion as of Dec 31, 2019. The company recorded negative adjusted automotive free cash flow (FCF) of $903 million in first-quarter 2019 compared with a negative FCF of $3,876 million in the prior-year period.
Actions Amid COVID-19
GM intends to resume operations in the United States and Canada on May 18. The company is providing new vehicle financing programs to spur demand during such uncertain times. GMF is offering 0% financing for seven years –– two years more than recent programs and four months deferred payments for those with A+ credit. Amid the coronavirus-led lockdown, General Motors’ online selling tool Shop. Click. Drive. is offering some respite.
The carmaker is implementing a number of actions to boost the firm’s cash position in a bid to sail through the coronavirus crisis. General Motors ended the first quarter with $33.4 billion in automotive liquidity, which includes around $16 billion drawn down from the credit revolvers. The firmextended $3.6 billion under the three-year revolving credit agreement to April 2022, in order to deal with the downturn caused by production shutdowns. It also extended the $2-billion 364-day revolving credit agreement, which was renewed by the company and its GM Financial (GMF) arm last month to April 2021.
General Motors has tapped brakes on quarterly cash dividend and suspended the share-repurchase program, citing the uncertainty caused by the coronavirus pandemic. The firm currently carries a Zacks Rank #5 (Strong Sell).
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
General Motors (GM) Q1 Earnings Beat on Solid GMNA Segment
General Motors (GM - Free Report) reported adjusted earnings of 62 cents per share in first-quarter 2020, surpassing the Zacks Consensus Estimate of 18 cents. Stronger-than-expected contribution from the North American segment led to the outperformance. However, the bottom line declined 56% from the year-ago figure of $1.41 a share.
The top U.S. carmaker reported revenues of $32,709 million, topping the Zacks Consensus Estimate of $32,587 million. However, the top line decreased from the year-ago figure of $34,878 million.
The automaker’s global market share was 7.9% in the reported quarter, reflecting a decline from 8.3% in the year-ago period.
Another U.S. auto biggie Tesla (TSLA - Free Report) also delivered an earnings beat despite coronavirus woes. In contrast, Ford (F - Free Report) and Fiat Chrysler not only missed earnings estimates but also incurred net loss in the first quarter of 2020.
General Motors Company Price, Consensus and EPS Surprise
General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote
Segment Results
GM North America (GMNA) generated first-quarter 2020 net revenues of $25,831 million, down from $27,365 million recorded in the corresponding period of 2019. Nonetheless, revenues from the GMNA unit outpaced the Zacks Consensus Estimate of $24,981 million. Vehicle sales came in at 775,000 units, reflecting a year-over-year decrease of 9.7%. Profits from the segment rose to $2,194 million from the year-ago level of $1,896 million. The metric also surpassed the consensus mark of $1,577 million. Strong sales of light-duty pickups and SUVs, along with cost-cut efforts led to improved year-over-year profits.
GM International’s (GMI) net revenues were $3,280 million, which declined from $3,850 million in the year-ago quarter. However, revenues from the GMI segment topped the Zacks Consensus Estimate of $3,147 million. Vehicle sales came in at 191,000 units, reflecting a year-over-year decrease of 19%. The unit recorded an operating loss of $551 million against a profit of $31 million a year ago. Sagging vehicle sales in China amid economic slowdown and the COVID-19 pandemic negatively impacted the segment.
GM Financial generated net revenues of $3,561 million in the quarter under review, down from $3,620 million recorded in the year-ago period. The segment recorded operating profit of $230 million, representing a decline from $359 million recorded in the prior year quarter. Increase in loan loss reserve related to coronavirus acted as a dampener.
GM Cruise generated net revenues of $25 million in first-quarter 2020. The segment reported operating loss of $228 million, wider than $169-million loss in the prior-year quarter.
Financials
General Motors had cash and cash equivalents of $38.5 billion as of Mar 31, 2020 compared with $19.1 billion as of Dec 31, 2019. Long-term automotive debt stands at $28.6 billion compared with $12.5 billion as of Dec 31, 2019. The company recorded negative adjusted automotive free cash flow (FCF) of $903 million in first-quarter 2019 compared with a negative FCF of $3,876 million in the prior-year period.
Actions Amid COVID-19
GM intends to resume operations in the United States and Canada on May 18. The company is providing new vehicle financing programs to spur demand during such uncertain times. GMF is offering 0% financing for seven years –– two years more than recent programs and four months deferred payments for those with A+ credit. Amid the coronavirus-led lockdown, General Motors’ online selling tool Shop. Click. Drive. is offering some respite.
The carmaker is implementing a number of actions to boost the firm’s cash position in a bid to sail through the coronavirus crisis. General Motors ended the first quarter with $33.4 billion in automotive liquidity, which includes around $16 billion drawn down from the credit revolvers. The firmextended $3.6 billion under the three-year revolving credit agreement to April 2022, in order to deal with the downturn caused by production shutdowns. It also extended the $2-billion 364-day revolving credit agreement, which was renewed by the company and its GM Financial (GMF) arm last month to April 2021.
General Motors has tapped brakes on quarterly cash dividend and suspended the share-repurchase program, citing the uncertainty caused by the coronavirus pandemic. The firm currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>