Development of Menifee's 'Golden Meadow' in question
GM Earnings Soar
New York CNN —
General Motors reported its second-quarter earnings surged 59%, and the company raised its full-year profit outlook.
The company said its adjusted earnings reached $2.7 billion, or $1.91 a share. That's up from the $1.7 billion it reported a year earlier. Analysts surveyed by Refinitiv had been forecasting earnings per share of $1.85 in the quarter.
The company also said it now expects to earn between $9.3 billion to $10.7 billion for the full year, significantly higher than its previous outlook of earnings between $8.4 billion $9.9 billion.
Those earnings forecasts could be derailed though if the company is hit with a strike by the United Auto Workers union. The current labor pact expires September 14, and talks are already off to a contentious start.
UAW President Sean Fain said the union is prepared to strike if the company does not meet its demands. A six-week strike against GM in the last round of talks in 2019 cost the company a reported $2.9 billion.
The strong earnings and profit outlook could pose a challenge for GM at the negotiating table by prompting the union to take an even harder line in its demands. The union is on record wanting to end a lower-cost wage and benefit tier for some of its hourly employees and a return to cost-of-living adjustments to protect workers from inflation pressures.
But this is a good time for automakers – and the union knows that. Demand for vehicles remains strong and prices are at or near record levels. GM's global vehicle sales rose 12% to 1.6 million vehicles, and its revenue increased even more, rising 25% to $44.7 billion, topping forecasts by $2.1 billion.
"The biggest driving force behind our financial results is customer demand for our vehicles," said CEO Mary Barra in a letter to employees.
GM also faces a September contract expiration with Unifor, which represents hourly workers at it Canadian plants. Barra took a moment during her call with investors to thank members of both unions. "There's a direct connection between their hard work and our success," she said. And she pledge to reach new deals with both unions.
"We have a long history of negotiating fair contracts. That's the best possible outcome for all," she said. "We look forward to constructive talks."
Asked during an interview on CNBC Tuesday if there will be a strike, Barra said she's confident a work stoppage can be avoided.
"We think we can find an agreement that does the right thing for our employees but also allows GM to remain competitive," she said. "In my mind we can get to something that meets everyone's needs without a strike."
The company took a $792 million charge related to a recall of its Chevy Bolt to replace its EV battery, due to the fire risk posed by the electric car. LG, the company's battery supplier had already agreed to pay GM $1.9 billion to cover most of the cost of the recall. The latest charge reflects a change in that agreement with LG.
"The charge reflects the conscious decision we made during the … recall to serve our customers in ways that go beyond traditional remedies, and we are taking new steps that will reduce GM's costs and improve our EV margins over time," said Barra. GM replaced the expensive EV batteries in the recalled Bolts.
The company hit its target of 50,000 EV sales in North America in the first half of the year and is on track to produce 100,000 EVs for the market in the second half of the year. But that is still a fraction of its overall deliveries, as it sold a total of 1.5 million vehicles in North America in the first half.
Shares of GM (GM) were down 3% in early trading.
GM And Other Automakers Will Build 30,000 Electric Vehicle Chargers
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Generated by cloudfront (CloudFront) Request ID: Ry0MK-15u6xaTUItdEydwH6lcv3A2jiuLvMSDdbbSj15dRzEOcClXQ==General Motors Company (NYSE: GM)'S Stock Adds 0.98%, But It May Be Worth Investing In
General Motors Company (NYSE:GM) price closed higher on Tuesday, July 18, jumping 0.98% above its previous close.
A look at the daily price movement shows that the last close reads $38.75, with intraday deals fluctuated between $38.55 and $39.19. The company's 5Y monthly beta was ticking 1.39 while its P/E ratio in the trailing 12-month period read 6.05. Taking into account the 52-week price action we note that the stock hit a 52-week high of $43.63 and 52-week low of $31.10. The stock added 2.89% on its value in the past month.
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General Motors Company, which has a market valuation of $55.08 billion, is expected to release its quarterly earnings report Jul 25, 2023. The company stock has a Forward Dividend ratio of 0.36, while the dividend yield is 0.92%. It is understandable that investor optimism is growing ahead of the company's current quarter results. Analysts tracking GM have forecast the quarterly EPS to grow by 1.82 per share this quarter, while the same analysts predict the annual EPS to hit $7.01 for the year 2023 and up to $6.59 for 2024. In this case, analysts estimate an annual EPS growth of -7.60% for the year and -6.00% for the next year.
On average, analysts have forecast the company's revenue for the quarter will hit $42.22 billion, with the likely lows of $38.43 billion and highs of $45.82 billion. The average estimate suggests sales growth for the quarter will likely rise by 18.10% when compared to those recorded in the same quarter in the last financial year. Staying with the analyst view, there is a consensus estimate of $166.59 billion for the company's annual revenue in 2023. Per this projection, the revenue is forecast to grow 6.30% above that which the company brought in 2023.
Revisions to the company's EPS highlights a short term direction of a stock's price movement, which in the last 7 days came up with 1 upward and no downward reviews. On the technical perspective front, indicators give GM a short term outlook of 100% Buy on average. Looking at the stock's medium term indicators we note that it is averaging as a Hold, while an average of long term indicators are currently assigning the stock as 50% Buy.
Here is a look at the average analyst rating for the stock as represented on a scale of 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock is strong buy or strong sell respectively. Specifically, 25 analysts have assigned GM a recommendation rating as follows: 10 rate it as a Hold; 14 advise Buy while 0 analyst(s) assign an Overweight rating. 0 analyst(s) have tagged the General Motors Company (GM) stock as Underweight, with 1 recommending Sell. In general, analysts have rated the stock Overweight, a scenario likely to bolster investors out for an opportunity to add to their holdings of the company's shares.
If we dive deeper into the stock's performance we see the positive picture represented by the PEG ratio, currently standing at 1.42. The overview shows that GM's price is at present 1.51% off the SMA20 and 9.42% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 58.52, with weekly volatility standing at 1.85%. The indicator jumps to 1.92% when calculated based on the past 30 days. General Motors Company (NYSE:GM)'s beta value is holding at 1.39, while the average true range (ATR) indicator is currently reading 0.87. Considering analysts have assigned the stock a price target range of $32.00-$89.00 as the low and high respectively, we find the trailing 12-month average consensus price target to be $47.76. Based on this estimate, we see that current price is roughly 18.22% off the estimated low and -127.45% off the forecast high. Investors will no doubt be excited to see the share price fall to $44.00, which is the median consensus price, and at that level GM would be -12.45% from current price.
Turning out attention to how the General Motors Company stock has performed in comparison to its peers in the industry, here's what we find: GM's stock is 0.98% on the day and 19.04% in the past 12 months, while Tesla Inc. (TSLA) traded 1.02% in the last session and was positioned 22.19% up on its price 12 months ago. As for General Motors Company, the P/E ratio stands at 6.05 lower than that of Tesla Inc.'s at 86.35. Elsewhere in the market, the S&P 500 Index has rallied 0.71% in last trading session, with the Dow Jones Industrial also saw a positive session on the day with 1.06%.
An analysis of the General Motors Company (NYSE:GM) stock in terms of its daily trading volume indicates that the 3-month average is 13.97 million. However, this figure increases on the past 10-day timeline to an average of 12.52 million.
Current records show that the company has 1.40B in outstanding shares. The insiders' percentage holdings are 0.20% of outstanding shares while the percentage share held by institutions stands at 82.80%. The stats also highlight that short interest as of Jun 29, 2023, stood at 33.37 million shares, which puts the short ratio at the time at 2.39. From this we can glean that short interest is 2.40% of company's current outstanding shares. Notably, we see that shares short in June rose slightly given the previous month's figure stood at 33.2 million. But the 16.32% upside, the stock's price has registered year-to-date as of last trading, will likely reignite investor interest given the prospect of it rallying even higher.
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