General Motors (GM) released its 4Q15 earnings on February 3, 2016. The company reported adjusted EPS (earnings per share) of $1.39 in 4Q15. The company’s EPS for the corresponding quarter of last year stood at $1.19.
Strong performance in North America—along with increased demand for full-size pickup trucks, SUVs, and crossovers—positively impacted the company’s 4Q15 earnings. Notably, US automobile sales were at their historically highest levels last year.
General Motors’ 4Q15 EPS exceeded Wall Street analysts’ expectations. However, concerns about China’s economic slowdown weighed on GM’s 4Q15 stock movement. On the day of the earnings release, GM’s stock didn’t showcase any optimism, and its shares closed at $28.92 on February 3, 2016. This was a fall of 2.5% from the previous day’s closing. Investors’ worries that US auto sales have peaked could be another factor that kept prices on a negative note.
As of February 8, 2016, General Motors has witnessed price action of -15.7% year-to-date. This fall can be attributed to the broader market (XLY) sell-off.
Fiat Chrysler Automobiles (FCAU) reported its 4Q15 earnings on January 27, 2016, and noted during its earnings call, “We are forecasting industry volume levels in 2015–16 to remain at what we consider a peak level.”
In the last week, General Motors’ direct competitor Ford (F) also reported a positive impact of last year’s US auto demand on its earnings. Tesla (TSLA) is set to release its 4Q15 earnings on February 10, 2016.
In this series, we’ll explore General Motors’ 4Q15 earnings report in detail. We’ll discuss what factors could drive the company’s earnings in the coming quarters, and we’ll cover the company’s recent investment in the car-sharing domain.