General Motors beats Q4 earnings forecasts

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  • Full-year profit outlook confirmed
  • “Highly volatile environment”, says CEO
  • GM’s North American division adds most to bottom line

General Motors revealed fourth-quarter earnings that were stronger than expected on Wednesday, and the car maker also confirmed its full-year profit outlook. Truck sales in the United States that were higher in margin helped to offset significant weaknesses in Chinese markets.

The company’s earnings for the three months that ended in December were $1.43 per share, beating the consensus of $1.24 per share that analysts had predicted. Nevertheless, this figure is down by 13.3% from the same period last year.

Revenues for the group were announced as totaling $38.4 billion, which is an increase of 1.8%. General Motors also confirmed its full-year adjusted earnings range as being between $6.50 and $6.70 per share. Between $4.5 billion and $6 billion in free cash flow could come in from the company’s core automobile operations.

CEO Mary Berra said: “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,” she added.

In early trading, GM shares saw a hike of 3.05%, trading at $40.50 each. This extends the stock’s gains over the past three months to around 12%.

Berra commented: “We navigated significant headwinds in 2018 to deliver another year of strong results, demonstrating the earnings resiliency of this company.”

“The actions we’ve been taking to shape a stronger, more profitable portfolio of businesses position GM for long-term success,” she added.

Most of the company’s fourth-quarter bottom line came from GM’s North American division ,which saw net income go up 5.8% to achieve a total of over $3 billion.

Brian Ducey

Brian graduated from Chaminade High School and the University Of Vermont Kalkin School Of Business with a concentration in Finance. He began his career with Knight Capital Markets, working his way to market maker. Brian later expanded his market repertoire, working with various sell-side research brokerage firms, such as Sidoti & Co., and William O’Neill & Co., as an Account Executive. With over 20 years-experience in the financial industry, Brian has built a unique perspective into “market intelligence” understanding an ability to read the tape and apply second level thinking in a fast paced environment. Brian also carried several market licenses, including the series 7, 24, 55, 65, and 63 licenses as well as previously passing The Connecticut Life and Health Insurance Exam