Loading...
Loading...
On Wednesday, Bank of America lowered the price objective for
General MotorsGM from $46 to $43 and maintained the Buy rating.
Analyst John Murphy warns investors to “buckle up for a bumpy ride, as charges obfuscate 1Q results.”
Wall Street first quarter earnings per share estimates come in a wide range, likely because General Motors “will be recording numerous charges in its 1Q14 results,” said Murphy.
The main charges General Motors will face in the first quarter include:
- $1.3 billion of charges related to the ignition switch and other recalls that will be included in operating results.
- $300-400 million of restructuring charges (appx. $0.10-0.15/share) that will be included in operating results.
- $400 million of charts due to a currency exchange rate remeasurement in Venezuela that will be excluded from operating results.
Murphy lowered his first quarter earnings per share estimate from $0.50 to $0.01 and believes “the recall charges and the majority of the restructuring charges are non-recurring in nature and therefore should not be included in operating results.”
Shares of General Motors are up 0.9 percent to $34.55 in Wednesday's trading.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in