Key Takeaways From General Motors’ Q2 2017 Earnings

-6.76%
Downside
44.59
Market
41.57
Trefis
GM: General Motors logo
GM
General Motors

General Motors (NYSE:GM) announced its Q2 2017 results on July 25 reporting a diluted EPS (earnings per share) of $1.60 slightly lower than consensus estimates of $1.70. Revenues stood at $37 million, again marginally lower than the estimate of $40 million. Below is a summary of the company’s financial performance for this quarter:

 

Relevant Articles
  1. Down 12% YTD Will General Motors Q3 Earnings Help It Rebound?
  2. Rising Volumes And Cooling Inflation Will Drive GM’s Q2 Results
  3. What To Expect From GM’s Q1 Earnings?
  4. What’s Next For GM After A Solid Q4?
  5. Company Of The Day: General Motors
  6. With Deliveries Picking Up, How Will GM Fare In Q3?

Below is a summary of General Motors’ regional Performance:

North America: Wholesale vehicle sales in the region decreased to 894,000 in Q2 2017, compared to the 1,004,000 number for the same period in the previous year leading to a decline in revenues from the region. This decrease was primarily due to a decrease in off-lease rental car sales and a decrease in Chevrolet Malibu and Cruze.  However, during the first half of the year, vehicle sales in North America are flat compared to the same period in the previous year.

China: GM set a sales record in China in Q2 2017 with deliveries of 852,000 vehicles, up 1% year on year. This increase was primarily driven by its Cadillac and Baojun brands.  Its China automotive equity income increased 2.4% year on year in this quarter.

GM International: While the company has exited operations in Europe, South America is emerging as a strong international market.  In Q2, the company delivered 160,000 vehicles in the region, up 18% year on year and its market share rose by 0.7 points.

Going Forward:

Restructuring operations: GM has restructured its international operations – phasing out the Chevrolet brand, changing India’s focus to export manufacturing and transitioning its South America business to ISUZU Motors. These measures, along with the sale of Opel/Vauxhall brands and the financial business in Europe, will allow the company to focus on high return opportunities such as SUVs and trucks.

Investment In New Technology: The company is also investing in technologies around electrification, autonomous vehicles, and mobility to adapt to the changing automotive landscape. Chevrolet Bolt EV, its affordable long range  electric vehicles, will start nationwide sales from August 1st. The company has already sold 8,200 vehicles under this brand since its launch in December last year.

GM ‘s EPS guidance for the year 2017 remains in the range of $6-$6.50.

 

Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for General Motors

See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology