General Motors Crushes Earnings Estimates

General Motors (NYSE: GM  ) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), General Motors met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share dropped. GAAP earnings per share dropped.

Margins dropped across the board.

Revenue details
General Motors reported revenue of $36.88 billion. The 12 analysts polled by S&P Capital IQ expected sales of $36.76 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.85. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.56 per share. Non-GAAP EPS of $0.85 for Q1 were 8.6% lower than the prior-year quarter's $0.93 per share. GAAP EPS of $0.58 for Q1 were 3.3% lower than the prior-year quarter's $0.60 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 10.6%, 160 basis points worse than the prior-year quarter. Operating margin was 2.6%, 170 basis points worse than the prior-year quarter. Net margin was 3.2%, 30 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $38.39 billion. On the bottom line, the average EPS estimate is $0.73.

Next year's average estimate for revenue is $155.06 billion. The average EPS estimate is $3.27.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 829 members out of 1,041 rating the stock outperform, and 212 members rating it underperform. Among 196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 158 give General Motors a green thumbs-up, and 38 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on General Motors is outperform, with an average price target of $35.24.

If you're looking for an edge in the transportation segment of the market, consider strong, smaller brands that sell their products to folks like you and me. We've got a couple to offer, plus a home-owner's trusted go-to company, in our new special report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice." Click here for instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 04, 2013, at 12:54 PM, AmericanFirst wrote:

    Yes, and Ford crushed GM's earnings, despite the government recapitaliziation of GM, which afforded GM a superior Balance Sheet to support more investment in product, plants/equipment, marketing incentives etc. and much lower debt interest expense.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2408462, ~/Articles/ArticleHandler.aspx, 8/22/2014 4:29:30 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement