General Motors’ Q1 2019 earnings
General Motors (GM) is set to release its first-quarter earnings report on April 30. In 2018, GM was the largest US automaker by market share—much larger than Ford Motor Company (F), Toyota (TM), and Fiat Chrysler Automobiles (FCAU). Before we see what analysts expect from GM’s first quarter, let’s see how its stock is performing before next week’s earnings event.
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In the fourth quarter of 2018, when the S&P 500 Index fell by 14.0%, GM stock remained mixed and ended the quarter with 0.7% losses.
Bullish movement in 2019 so far
As of April 25, General Motors stock has risen about 7.1% on a month-to-date basis, compared to 3.3% gains in the S&P 500 Index. So far in April, GM’s peers (XLY) Fiat Chrysler, Ford, and Toyota have risen about 4.0%, 9.0%, and 4.1%, respectively.
High expectations for the auto industry’s first-quarter earnings season due to consistent strength in pickup truck sales could be one reason for the recent optimism in auto stocks. Investors’ hopes for the ongoing US-China trade negotiations are also supporting auto stocks’ bullish sentiment.
In the first quarter, most US auto stocks except electric carmaker Tesla (TSLA) traded on a positive note. In the first quarter, GM rose about 10.9% while Ford, Fiat Chrysler, and Toyota rose 14.8%, 2.7%, and 1.7%, respectively and TSLA tanked 15.9%. Media reports suggesting weakening demand for Tesla cars and a sharp sequential decline in its first-quarter car deliveries are keeping Tesla investors worried.