General Motors Company GM is a leading global automotive company in the U.S. The company has been gaining new contracts for business expansion. In Jun 2015, the company entered into a partnership agreement with Japanese company, Isuzu Motors Ltd. The deal is helping General Motors to expand its commercial-vehicle offerings with low cab-forward models. In addition, General Motors is also focused on investment in innovative technologies and vehicles which should provide sustained growth while maximizing shareholders value. The automaker will also benefit from its regular investments in the U.S to strengthen its operations and launch new and updated products.
However, General Motors is facing a challenging situation in Russia on account of declining sales owing to a weak economy. Meanwhile, Venezuela is facing challenges on account of low oil prices and currency controls which have led to a decline in the value of dollar in South America. Recall-related repair and compensation expenses are also expected to weigh on the company’s financials.
Estimate Trend & Surprise History
Investors should note that the third-quarter earnings estimate for General Motors has increased by 2 cents to $1.17 over the past 7 days.
General Motors has delivered positive earnings surprises in the past. It surpassed the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 12.55%. Thus, investors have been eagerly awaiting General Motors’ latest earnings report.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings
General Motors delivered adjusted earnings of $1.50 per share in the third quarter of 2015, significantly beating the Zacks Consensus Estimate of $1.17.
Revenues
General Motors reported revenues of $38.8 billion, down 1.3% year over year. Revenues marginally surpassed the Zacks Consensus Estimate of $38.6 billion.
Key Stats/Developments to Note
Year-to-date through Oct 19, 2015, General Motors has returned above $4.6 billion to shareholders by repurchasing share of $2.9 billion and paying dividends of $1.6 billion.
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 increased 4.09% to $34.85 in pre-market trading after the automaker released the third quarter results. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on General Motors’ earnings report!
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