General Motors Q4 results: shares up after beating earnings revenue estimates
GM stock is up after a better-than-expected revenue report.
General Motors(GM) stock rose after a positive earnings report. GM Q4 revenue and earnings easily beat Wall Street estimates.
GM earnings:key figures
Earnings per share (EPS) | $1.43 |
Revenue | $38.4 billion |
Net income | $2.1 billion |
GM earnings
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?
General Motors’ Q4 results were better than rival carmaker Tesla, which had worse-than-expected earnings. Ford stock also rose after a positive earnings report, similar to GM’s Q4 profits.
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.
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