General Motors Company
) hit new 52-week high of $32.44 on May 3, which is above its
previous level of $31.08, and closed at $32.10 on the same date.
Their last closing price was $31.82, which represented a solid
one-year return of 42.0% and year-to-date return of 9.2%.
The world's second largest automaker (by sales volume) has a
market cap of $43.9 billion. Average volume of shares traded over
the last three months stood at approximately 11,149.1K.
Shares of the company started escalating following its
announcement of revival plan in Europe and U.S. Treasury
department's announcement of selling a significant stake in the
Last month, Chairman and CEO of GM, Dan Akerson, promised to
invest €4 billion ($5.2 billion) in its European opeartion Opel
without revealing any plan to close down plants or other specific
measures in order to boost earnings. Opel plans to launch 23 new
models and 13 new engines within 2016 and develop a small car
platform with French partner
PSA Peugeot Citroen
In the same month, the Treasury Department revealed that it sold
$621 million worth of GM common stock in March, recovering $30.4
billion of the $49.5 billion bailout fund received by GM.
GM reported a 28.0% fall in earnings to 67 cents per share in the
first quarter of the year from 93 cents in the same quarter of
2012 (all excluding special items) due to lower earnings
generated from the company's all geographic operations except
Europe. Despite this, the automaker's earnings exceeded the Zacks
Consensus Estimate by 11 cents per share.
Revenues in the quarter slid 2.4% to $36.9 billion, despite a
3.6% rise in retail unit sales to 2.4 million vehicles globally.
Nevertheless, it was higher than the Zacks Consensus Estimate of
General Motors is gearing up for more than 40 major vehicle
launches in 2013 across the globe in order to drive sales and
revenues. In addition, the company expects that its European
results will improve further based on its cost reduction
Ford Motor Co.
) posted an increase of 4.1% in earnings to $1.6 billion and 5.1%
in earnings per share to 41 cents in the first quarter of 2013,
beating the Zacks Consensus Estimate by 3 cents. Revenues
improved 10.5% to $35.8 billion, exceeding the Zacks Consensus
Estimate of $32.8 billion.
The improvement in revenues and earnings was mainly attributable
to Ford's strong performance in North America and Asia Pacific
Africa. The company's results were disappointing in South America
due to unfavorable exchange rate as well as in Europe due to the
Currently, shares of GM retain a Zacks Rank #3 (Hold). While we
remain on the sidelines about General Motors, stock that is
currently performing well in the broader auto industry includes
) with a Zacks Rank #1 (Strong Buy).
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