logo
Plus   Neg
Share
Email
Comment

GM Q4 Results Beat Estimates

GeneralMotors-020618-lt.jpg

Automaker General Motors Co. (GM) on Tuesday reported a net loss for the fourth quarter, reflecting a non-cash charge related to the U.S. tax reform as well as lower revenues.

However, both revenue and adjusted earnings per share for the quarter beat analysts' estimates. The company's shares are rising more than 1 percent in pre-market activity.

Fourth-quarter net loss attributable to GM common stockholders was $5.17 billion or $3.65 per share, compared to net income of $1.84 billion or $1.19 per share in the year-ago period.

The latest quarter's results include a non-cash charge related to U.S. tax reform of $7.3 billion.

However, adjusted earnings for the quarter were $1.65 per share, compared to $1.36 per share last year. On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.38 per share. Analysts' estimates typically exclude special items.

Net sales and revenue for the quarter declined 5.5 percent to $37.72 billion from $39.90 billion in the year-ago period. Wall Street expected revenues of $36.55 billion.

The decline in revenues was primarily due to planned downtime and other actions in North America to match supply with demand, partially offset by growth at GM Financial as well as increased price and mix.

GM's adjusted earnings before interest and taxes or adjusted EBIT increased 18.7 percent from last year to $3.09 billion. The result was driven by sales of GM's latest crossovers, along with strong pricing and cost control, which more than offset a wholesale volume decline during the quarter.

In North America, GM reported adjusted EBIT of $2.88 billion, up from $2.68 billion in the year-ago period.

Through December 31, 2017, GM sold 8.9 million vehicles globally, an increase of 0.8 percent from 2016, and grew market share in each of its three key markets.

In January, GM forecast fiscal year 2018 results to be largely in line with 2017 results. The company noted that the introduction of its all-new full-size pickups later this year is expected to help accelerate earnings in 2019.

Further, GM said it expects to deploy self-driving vehicles in a ride sharing environment in 2019.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

comments powered by Disqus
Follow RTT