General Motors Q4 results: shares up after beating earnings revenue estimates
GM stock is up after a better-than-expected revenue report.
|Earnings per share (EPS)||$1.43|
|Net income||$2.1 billion|
GM earnings per share was $1.43, more than the predicted $1.22. General Motors Q4 revenue was $38.4 billion, surpassing the expected $36.48 billion. Net income topped $2.1 billion, propelled by surging sales of pickup trucks like the Chevrolet Silverado in the US and in China. The carmaker’s chief financial officer (CFO), Dhivya Suryadevara, noted the success of its Cadillac vehicles in the Asian nation despite declining sales overall in China.
‘Cadillac was up across the board about 20 percent year over year in 2018, in a declining market environment,’ said Suyadevara.
General Motors is leaving Europe to combat slumping sales, which appeared to help GM profits. Michelle Krebs, senior analyst at AutoTrader, said that the carmaker made the right decision to cut its losses on the continent.
‘What’s apparent is that GM has cleaned up its balance sheet.Getting out of Europe has proven to be a smart move,’ said Krebs.
While GM has been praised for reducing costs, lawmakers have been critical of General Motors for closing plants and laying off thousands of workers. US Representative, Dan Kildee, wants GM Q4 profits to be reinvested in his native US state of Michigan to save more employees.
‘Now it is incumbent on General Motors to have the back of American workers and invest in American manufacturing.We didn’t rescue the American auto industry to save jobs in Mexico. The American taxpayer rescued General Motors to support American workers,’ said Kildee in a statement.
What do GM’s Q4 results mean for their share price?
GM’s Q4 results could be a positive sign for the carmaker’s share price. General Motors’ stock could rise above its current $39.83 price.
How do GM's Q4 results compare to other automaker stocks?
What is GM’s dividend forecast?
General Motors’ dividend forecast is that profit could rise to $10 billion. Adjusted cash flow is projected to be between $4.5 billion-$6 billion. Chief executive officer, Mary Barra, touted the high General Motors Q4 revenue and predicted a strong future for the company.
‘GM delivered another strong year of earnings in a highly volatile environment in 2018. We will continue to make bold decisions to lead the transformation of this industry and drive significant shareholder value,’ said Barra in a statement.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.