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General Motors (GM) Q3 Earnings Beat Estimates, Fall Y/Y

General Motors Co.GM delivered adjusted earnings of $1.32 per share in third-quarter 2017, surpassing the Zacks Consensus Estimate of $1.07. However, earnings decreased 22.8% from $1.71 per share in the third quarter of 2016.

Revenues in the reported quarter came in at $33.6 billion, 13.5% lower than the year-ago quarter. However, revenues surpassed the Zacks Consensus Estimate of $31.6 billion.

Total wholesale unit sales declined to 1.08 million vehicles from 1.34 million in the third quarter of 2016. Worldwide retail unit sales decreased to 2.32 million vehicles from 2.39 million in the year-ago quarter. The automaker's global market share was 10% during the reported quarter, reflecting a decline from 10.6% in the year-ago quarter.

Segment Results

GM North America (GMNA) generated net sales and revenues of $24.8 billion during the third quarter of 2017, reflecting a decline from $30.1 billion in third-quarter 2016.

GM International Operations' (GMIO) net sales and revenues came in at $3 billion, declining from $3.4 billion in the year-ago quarter.

GM South America (GMSA) generated net sales and revenues of $2.6 billion, increasing from $2 billion in the year-ago quarter.

GM Financial generated net sales and revenues of $3.2 billion during the quarter, reflecting an increase from $2.4 billion in the year-ago quarter.

Financial Position

General Motors had cash and cash equivalents of $12.8 billion as of Sep 30, 2017 compared with $12.6 billion as of Dec 31, 2016.

Automotive operating cash flow during the quarter came in at $1.1 billion, down by $5 billion from that of third-quarter 2016.

2017 Outlook

General Motors continues to expect 2017 adjusted earnings per share in the range of $6.00-$6.50. Further, the automaker is expected to generate around $6 billion in adjusted automotive free cash flow. The company aims at returning capital of up to $7 billion to its shareholders in 2017.

General Motors Company Price, Consensus and EPS Surprise

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

Zacks Rank

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

Some better-ranked stocks in the auto space include Fox Factory Holding Corp FOXF , PACCAR Inc PCAR and Fiat Chrysler Automobiles N.V. FCAU .

Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1(Strong Buy) Rank stocks here .

Fox Factory Holding, PACCAR and Fiat Chrysler have a long-term expected earnings growth rate of 14.2%, 10% and 19.1%, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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