How Did GM’s Stock Fare in January?



General Motors’ 4Q16 earnings

The largest US automaker, General Motors (GM), is set to release its 4Q16 earnings report on February 7, 2017. Last year, the company had the largest market share in the US, followed by Ford Motor (F) and Toyota (TM). Before we find out what investors should expect from GM’s 4Q16 earnings, let’s explore how its stock performed in the fourth quarter last year and January 2017.

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GM’s stock in January

In January 2017, GM’s stock went up 5.1%, much higher than the 1.8% gains in the S&P 500 Index (SPY). During the month, Ford, its direct peer, rose about 1.9%. Ford’s dismal 4Q16 results could be the primary reason for Ford’s underperformance in January.

Fiat Chrysler (FCAU) also released its 4Q earnings in January and its stock jumped 17.9% in January this year. The company’s improving margins and debt condition could be the primary reason for this optimism among investors.

Previously in 4Q16, Fiat Chrysler rose ~42.5%, much higher than its direct US peers. General Motors and Ford, the two largest US automakers, ended the quarter with 9.7% and 0.5% gains, respectively. This was against the 3.3% positive price action seen in the S&P 500 Index in the second quarter.

Series overview

In this series, we’ll explore Wall Street analysts’ revenue and margins estimates and recommendations for General Motors’ 4Q16 earnings. Also, we’ll find out what other key announcements investors can expect from the company’s fourth quarter earnings event.

First, we’ll go through a quick recap of General Motors’ 3Q16 earnings and then we’ll move on to GM’s 4Q16 earnings estimates.


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