We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors (GM) Posts Narrower-Than-Expected Loss in Q2
Read MoreHide Full Article
General Motors (GM - Free Report) reported an adjusted loss of 50 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of loss of $1.72. Higher-than-expected revenues, primarily from the GMNA and GMI segments, resulted in this narrower-than-anticipated loss.
In the year-ago quarter, the company had recorded earnings of $1.64 per share. The pandemic-induced lower demand and sales weighed on the company’s results compared with the second quarter of 2019. The top U.S. carmaker reported revenues of $16,778 million, missing the Zacks Consensus Estimate of $20,475 million. Revenues also decreased from the year-ago figure of $36,060 million.
The automaker’s global market share in GM markets was 10.9% in the reported quarter, reflecting a rise from the year-ago period’s 10.6%.
General Motors Company Price, Consensus and EPS Surprise
GM North America (GMNA) generated second-quarter 2020 net revenues of $11,604 million, down from the $28,324 million recorded in the corresponding period of 2019. Nonetheless, revenues from the unit outpaced the Zacks Consensus Estimate of $9,940 million. Vehicle sales came in at 565,089 units, reflecting a year-over-year plunge of 35.5%. The segment incurred an operating loss of $101 million as against the year-ago operating profit of $3,022 million. Results were hurt by lower production as a result of the coronavirus pandemic.
GM International’s (GMI) net revenues were $1,677 million, which declined from the year-ago quarter’s $4,047 million. However, revenues from the segment outpaced the Zacks Consensus Estimate of $2,540 million. Vehicle sales came in at 130,599 units, reflecting a year-over-year decrease of 10%. The unit recorded an operating loss of $270 million, wider than the prior year’s $48 million. Dismal wholesales as a result of the COVID-19 crisis negatively impacted the segment.
GM Financial generated net revenues of $3,423 million in the June-end quarter, down from the $3,639 million recorded in the year-ago period. The segment recorded operating profit of $226 million, marking a decline from the $536 million witnessed in the prior-year quarter. Higher credit provision expense and accelerated depreciation expense due to reduced residual values, both related to the pandemic, acted as dampeners.
GM Cruise recorded net revenues of $28 million in the second quarter, up from the $25 million reported in the year-earlier period. The segment posted an operating loss of $195 million, narrower than the $279-million loss reported in the prior-year quarter.
GM Corporate delivered net revenues of $80 million in second-quarter 2020, up from the $54 million recorded in the year-ago period. The segment reported an operating loss of $196 million, narrower than the $219-million loss posted in the year-ago quarter.
Financials
General Motors had cash and cash equivalents of $28.2 billion as of Jun 30, 2020 compared with $19.1 billion as of Dec 31, 2019. Long-term automotive debt stands at $32.2 billion compared with $12.5 billion as of Dec 31, 2019. The company recorded negative adjusted automotive free cash flow (FCF) of $9 billion in second-quarter 2020, as against a positive FCF of $2.5 billion witnessed in the prior-year period.
Zacks Rank & Stocks to Consider
General Motors currently carries a Zacks Rank #3 (Hold).
Shares of Sonic Automotive have climbed 34.8%, year to date, compared with the industry’s rise 10.4%.
Shares of AutoNation have rallied 12.2%, year to date, compared with the industry’s rise of 10.4%.
Shares of LCI Industries have appreciated 11.7%, year to date, as against the industry’s decline of 6.1%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
General Motors (GM) Posts Narrower-Than-Expected Loss in Q2
General Motors (GM - Free Report) reported an adjusted loss of 50 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of loss of $1.72. Higher-than-expected revenues, primarily from the GMNA and GMI segments, resulted in this narrower-than-anticipated loss.
In the year-ago quarter, the company had recorded earnings of $1.64 per share. The pandemic-induced lower demand and sales weighed on the company’s results compared with the second quarter of 2019. The top U.S. carmaker reported revenues of $16,778 million, missing the Zacks Consensus Estimate of $20,475 million. Revenues also decreased from the year-ago figure of $36,060 million.
The automaker’s global market share in GM markets was 10.9% in the reported quarter, reflecting a rise from the year-ago period’s 10.6%.
General Motors Company Price, Consensus and EPS Surprise
General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote
Segment Results
GM North America (GMNA) generated second-quarter 2020 net revenues of $11,604 million, down from the $28,324 million recorded in the corresponding period of 2019. Nonetheless, revenues from the unit outpaced the Zacks Consensus Estimate of $9,940 million. Vehicle sales came in at 565,089 units, reflecting a year-over-year plunge of 35.5%. The segment incurred an operating loss of $101 million as against the year-ago operating profit of $3,022 million. Results were hurt by lower production as a result of the coronavirus pandemic.
GM International’s (GMI) net revenues were $1,677 million, which declined from the year-ago quarter’s $4,047 million. However, revenues from the segment outpaced the Zacks Consensus Estimate of $2,540 million. Vehicle sales came in at 130,599 units, reflecting a year-over-year decrease of 10%. The unit recorded an operating loss of $270 million, wider than the prior year’s $48 million. Dismal wholesales as a result of the COVID-19 crisis negatively impacted the segment.
GM Financial generated net revenues of $3,423 million in the June-end quarter, down from the $3,639 million recorded in the year-ago period. The segment recorded operating profit of $226 million, marking a decline from the $536 million witnessed in the prior-year quarter. Higher credit provision expense and accelerated depreciation expense due to reduced residual values, both related to the pandemic, acted as dampeners.
GM Cruise recorded net revenues of $28 million in the second quarter, up from the $25 million reported in the year-earlier period. The segment posted an operating loss of $195 million, narrower than the $279-million loss reported in the prior-year quarter.
GM Corporate delivered net revenues of $80 million in second-quarter 2020, up from the $54 million recorded in the year-ago period. The segment reported an operating loss of $196 million, narrower than the $219-million loss posted in the year-ago quarter.
Financials
General Motors had cash and cash equivalents of $28.2 billion as of Jun 30, 2020 compared with $19.1 billion as of Dec 31, 2019. Long-term automotive debt stands at $32.2 billion compared with $12.5 billion as of Dec 31, 2019. The company recorded negative adjusted automotive free cash flow (FCF) of $9 billion in second-quarter 2020, as against a positive FCF of $2.5 billion witnessed in the prior-year period.
Zacks Rank & Stocks to Consider
General Motors currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto sector include Sonic Automotive Inc. (SAH - Free Report) , AutoNation (AN - Free Report) and LCI Industries (LCII - Free Report) . While Sonic Automotive and AutoNation sports a Zacks Rank of 1 (Strong Buy), LCI Industries carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Sonic Automotive have climbed 34.8%, year to date, compared with the industry’s rise 10.4%.
Shares of AutoNation have rallied 12.2%, year to date, compared with the industry’s rise of 10.4%.
Shares of LCI Industries have appreciated 11.7%, year to date, as against the industry’s decline of 6.1%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>