Yahoo Finance General Motors' 2018 Earnings In Line With 2017 Estimates
General Motors Company GM announced that its forecast for 2018 results is mostly in line with its anticipated 2017 results. The 2018 performance will be driven by its strengthening presence in the North American and Chinese markets as well as an improvement in the South American market. Also, its enhanced growth of other businesses including GM Financial and its continuous cost efficiencies will contribute to its 2018 financials.
The company expects 2017 earnings per share at the upper end of its guided range of $6-$6.5. Further for 2018, it expects the metric almost in line with the tally of 2017.
Per management, the uptrend achieved in 2017 is likely to continue and further pick up the momentum to fortify in 2018 as well as in 2019. Also, reorganizing the company in the last few years has enabled it to invest in resources and funds for developing products with high returns. Few of these high-yielding products include next-generation trucks, slated to be introduced by the company at 2018-end.
General Motors Company Price and Consensus
General Motors Company Price and Consensus | General Motors Company Quote
Additionally, General Motors estimates higher profits in 2019 based on its assumption, driven by a line-up of high-margin pickup trucks. Moreover, its assembly of SUVs, low-cost cars for international markets and the Cadillac brand is expected to perk up its future income.
Although, the company expects its capital expenditure to decline in the future years but in 2018, the metric is expected at approximately $8.5 billion. Of the total expenses in 2018, $1 billion will be used toward developing self-driving car technology. Also, it will be ramping up its investments in electric vehicles but the stipulated funding amount has not been disclosed yet.
The company believes that with its sturdy product drive, it is expected to generate a strong performance in 2018.
Price Performance
Shares of General Motors have gained 4.8% in the last 30 days, outperforming the 3.8% rise of the industry it belongs to.
Zacks Rank & Key Picks
General Motors has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Volkswagen AG VLKAY, Ford Motor Company F and BorgWarner Inc. BWA, all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Volkswagen has an expected long-term growth rate of 12.9%. Shares of the company have rallied 27.8% in the last three months.
Ford has an expected long-term growth rate of 10.7%. In the last three months, shares of the company have gained 7.4%.
BorgWarner has an expected long-term growth rate of 8.6%. Shares of the company have increased 7.5% in the last three months.
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