General Motors To Continue Growth On Back Of Strong Pricing Mix

by Trefis Team
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Trefis
GM
General Motors
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General Motors (NYSE: GM) will report its 4th quarter and full year results for Fiscal year 2018 on February 6, 2019.  The company has delivered good results on the back of higher pricing during the first 3 quarters and we expect the 4th quarter to deliver good results on the basis of higher prices. The market expects the company to post revenue in the range of $145.3 billion and earnings of about $6.32 for the Fiscal year 2018.

 

We have a price estimate of $38 per share for the company. View our interactive dashboard – Our Outlook For General Motors in FY 2018 – and modify the key assumptions to arrive at your own price estimate for the company.

 

In General Motors – North America for Quarter 4, the company is expected to continue growth through better pricing and new products, like the new full-size pickup trucks launched. The said launch was ahead of schedule and sales were 30% above forecast by Quarter 3 and expected to perform strongly throughout the 4th quarter, too.

General Motors – China had achieved record third-quarter equity income, driven by a strong mix of vehicles in popular segments. The company continues to focus on electrification and future vehicle program in China as they believe it is an opportunity to improve their competitive advantage.

General Motors – Financial is expected to continue a strong quarter with the credit and residual period remaining constructive. The company had declared to pay a dividend of $375 million from the GM Financials segment.

The company continues to strengthen their automotive vehicle business with partnership between Honda, GM, and GM Cruise to develop and deploy a purpose-built autonomous ride-share vehicle, based on the current rate of iteration, the target year of commercialization is 2019.

Overall, the company has done well in the first 3 quarters of the Fiscal year 2018 on the back of strong pricing, good product mix, and continuous product improvement. Consequently, we expect the same to continue and the company to post a strong quarter 4 and full year results for Fiscal Year 2018.

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