logo
Plus   Neg
Share
Email

GM Turns To Profit In Q4; Results Beat Estimates

generalmotors feb06 lt

General Motors Co. (GM) on Wednesday reported a profit for the fourth quarter, compared to a loss in the year-ago period that included a non-cash charge related to the U.S. tax reform. Both revenue and adjusted earnings per share for the quarter beat analysts' estimates. The automaker's shares are rising almost 4 percent in pre-market activity.

According to GM, the latest quarter's results were led by strong performance in GM North America, including strong pricing for GM's all-new full-size pickup trucks - the Chevrolet Silverado and GMC Sierra.

Fourth-quarter net income attributable to GM common stockholders was $2.01 billion or $1.40 per share, compared to net loss of $5.17 billion or $3.65 per share in the year-ago period.

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

Excluding items, adjusted earnings for the quarter were $1.43 per share, compared to $1.65 per share last year. On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.22 per share. Analysts' estimates typically exclude special items.

Net sales and revenue for the quarter increased 1.8 percent to $38.40 billion from $37.72 billion in the year-ago period. Wall Street expected revenues of $36.48 billion.

GM's adjusted earnings before interest and taxes or adjusted EBIT decreased 8.3 percent to $2.83 billion from $3.09 billion last year.

In North America, GM reported adjusted EBIT of $3.04 billion, up from $2.88 billion in the year-ago period, reflecting the strength of the company's full-size truck franchise and ongoing cost discipline that helped offset commodity headwinds and downtime volume impact.

Through December 31, 2018, GM sold 8.4 million vehicles globally, down 12.7 percent from the prior year.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Facebook has unveiled Instagram Reels as its answer to the popular Chinese-owned video app TikTok. The social media giant said in a blog post that Instagram Reels is a new way to create short, entertaining videos on Facebook's photo-sharing app Instagram. Facebook reportedly shut down its TikTok clone Lasso in July, ahead of the launch of Instagram Reels. WD-40 Company recalled about 130,000 units of X-14 Mildew Stain Remover for potential risk of skin irritation, a statement by the U.S. Consumer Product Safety Commission (CPSC) showed. The company said pressure can build up inside the bottle and cause it to fall over and leak, posing a risk of skin irritation. Biopharmaceutical company Bristol-Myers Squibb Co. on Thursday reported a loss for the second quarter, compared to a profit last year, hurt primarily by hefty amortization expenses. However, adjusted earnings per share and quarterly revenues topped analysts' expectations. Looking ahead, the company raised its adjusted earnings and revenue outlook for the full-year 2020.
Follow RTT