General Motors Company Posts Upbeat Earnings on Strong US Auto Sales

General Motors Company Posts Upbeat Earnings on Strong US Auto Sales

Based on strong US January auto sales, reported on Tuesday, GM reported upbeat quarterly earnings results

General Motors Company Posts Upbeat Earnings on Strong US Auto Sales

By Muhammad Saad Khan on Feb 3, 2016 at 8:23 am EST

General Motors Company (NYSE:GM) has just disclosed fourth quarter of fiscal 2015 (4QFY15) results, before the opening bell today. The automaker announced upbeat revenue and earnings for the reported quarter.

The company posted $39.6 billion in total revenue, better than $39.03 billion expected by the Street, and in line with $39.62 billion reported in the year-ago period. Earnings per share (EPS) topped the analysts ‘estimate by $0.19, at $1.39, compared to the $1.21 consensus estimate.

During the earnings call, GM executive VP and CFO Chuck Stevens stated: “We plan to improve our results in 2016, driven by a significant vehicle launch cadence, continued emphasis on growing our adjacent businesses and an unrelenting focus on driving efficiencies into our core operations.”

In the North American market, the auto giant reported adjusted earnings before interest and tax (EBIT) of $2.8 billion, which represent a 600-million jump from last year’s comparable quarter. Adjusted EBIT for GM’s international operations were $0.4 billion, similar to the figure reported in 2014, while the South American markets had breakeven results.

The strong quarterly earnings results come after the automaker announced impressive US auto sales for January on Tuesday. The company’s auto sales in the US jumped 0.5% to 203,745 vehicles in the month, excluding the last two days. These were the best January sales results in the past eight years.

As a result of the upbeat earnings, GM stock has jumped 2% during pre-market hours today. The company’s shares are trading up 0.51% at $29.80, as of 8:07 AM EST.

Editing by Haseem uz Zaman; Graphics by Waqas Khan

comments powered by Disqus