The 10-second takeaway
For the quarter ended June 30 (Q2), General Motors met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share dropped. GAAP earnings per share dropped significantly.
Margins contracted across the board.
General Motors booked revenue of $38.24 billion. The 10 analysts polled by S&P Capital IQ anticipated revenue of $38.35 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 came in at $0.84. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. Non-GAAP EPS of $0.84 for Q2 were 6.7% lower than the prior-year quarter's $0.90 per share. GAAP EPS of $0.75 for Q2 were 17% lower than the prior-year quarter's $0.90 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.0%, 40 basis points worse than the prior-year quarter. Operating margin was 4.5%, 30 basis points worse than the prior-year quarter. Net margin was 3.6%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $39.25 billion. On the bottom line, the average EPS estimate is $0.98.
Next year's average estimate for revenue is $155.17 billion. The average EPS estimate is $3.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 864 members out of 1,075 rating the stock outperform, and 211 members rating it underperform. Among 225 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 give General Motors a green thumbs-up, and 35 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 $40.33.
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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.