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GM Steamrolls Q4 Earnings Estimates, Stock Pops Higher

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GM Steamrolls Q4 Earnings Estimates, Stock Pops Higher
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General Motors Company (NYSE: GM) closed out 2018 with a quarterly earnings beat, sustaining a string of outperformances and prompting a nearly 5-percent spike Wednesday morning.

The automaker achieved $38.4 billion in sales and $1.43 earnings per share against Street estimates of $36.55 billion and $1.22, respectively. The figures represent a decline from last year’s fourth-quarter EPS of $1.65 and an increase from revenue of $37.72 billion.

Adjusted earnings before interest and tax came in at $2.8 billion, and adjusted auto free cash flow closed at $4.2 billion. GM delivered 3 million vehicles domestically at an average transaction price of nearly $36,000 to achieve the top-line rates.

The company sees Sees FY2019 adjusted earnings of $6.50-$7.00 per share versus the $6.25 estimate.

Other Highlights

“We navigated significant headwinds in 2018 to deliver another year of strong results, demonstrating the earnings resiliency of this company,” CFO Dhivya Suryadevara wrote in the press release. “The actions we’ve been taking to shape a stronger, more profitable portfolio of businesses position GM for long-term success.”

GM Financial reported record earnings before tax of $400 million.

The news follows well-received Tuesday announcements of a 1,000-worker hiring spree and a $2.73 billion investment in Brazil. GM’s stock had risen 2.3 percent on those reports and in anticipation of positive earnings.

GM shares traded at $40.90 Wednesday morning, up 4 percent.

Related Links:

GM Pulls Ahead Of Ford In Just About All Competitions, Morgan Stanley Says

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Posted-In: Dhivya SuryadevaraEarnings News Guidance Top Stories Best of Benzinga

 

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