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General Motors (GM) Q1 Earnings Beat, Revenues Miss Estimates

Zacks Equity Research

General Motors Company GM reported adjusted earnings of $1.41 per share in first-quarter 2019, down 1.4% from the prior-year quarter. However, the bottom line surpassed the Zacks Consensus Estimate of $1.09.

During the quarter, the sale of 2019 Chevrolet Silverado and GMC Sierra light-duty crew cabs grew 20% year over year. This is in sync with the automaker’s strategy to launch high-content, high-margin trucks.

General Motors reported revenues of $34.9 billion, down3.4% from the year-ago quarter. Further, revenues missed the Zacks Consensus Estimate of $35.8 billion.

During the reported quarter, total sales for the wholesale unit decreased to 1.10 million from 1.16 million in the first quarter of 2018. Worldwide retail units sold decreased to 1.88 million from 2.10 million in the year-ago quarter.

This automaker’s global market share was 10.6% during the reported quarter, reflecting a decline from 11.4% in the year-ago quarter.

General Motors Company Price, Consensus and EPS Surprise

 

General Motors Company Price, Consensus and EPS Surprise | General Motors Company Quote

Segment Results

GM North America (“GMNA”) generated net sales and revenues of $27.4 billion in the first quarter of 2019, down from $27.8 billion recorded in first-quarter 2018.

GM International’s (“GMI”) net sales and revenues were $3.9 billion, declining from $4.8 billion in the year-ago quarter.

GM Financial generated net sales and revenues of $3.6 billion in the quarter under review, reflecting an increase from $3.4 billion recorded in the year-ago quarter.

Financial Position

General Motors had cash and cash equivalents of $17.2 billion as of Mar 31, 2019, compared with $20.8 billion as of Dec 31, 2018.

Adjusted automotive free cash flow during the reported quarter was $3.9 billion versus $3.3 billion used in the prior-year quarter.

General Motors currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are PACCAR, Inc. PCAR, SPX Corporation SPXC and AB Volvo VLVLY. PACCAR and SPX Corp currently carry a Zacks Rank #2 (Buy) while Volvo sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PACCAR has an expected long-term growth rate of 8.4%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.16% upward over the past 30 days.

SPX Corp has an expected current-year growth rate of 18.2%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.39% upward over the past 30 days.

Volvo has an expected long-term growth rate of 5%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 8.1% upward over the past 30 days.

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