Yahoo Finance Trucks Are King for General Motors in 1Q16 Earnings
General Motors’ Rising 1Q16 Revenues: Trucks, Chevy, Innovation
General Motors’ 1Q16 earnings
General Motors (GM), the largest US automaker, released its 1Q16 earnings on April 21, 2016. The company’s adjusted EPS (earnings per share) stood at $1.26. That’s 47% higher than $0.86 in 1Q15. Earlier, Wall Street analysts were estimating GM’s 1Q16 EPS to be $1. Now let’s take a quick look at the Market reaction to General Motors’ 1Q16 earnings.
GM stock inched up
On the day of General Motors’ strong earnings release, GM stock closed at $32.66, a rise of 1.5% from the previous session. Higher demand for trucks led to a favorable product mix and positive growth in China and Europe, which drove the company’s profits in 1Q16.
Auto industry in 1Q16
In the US auto industry (XLY), Harley-Davidson (HOG) announced its mixed 1Q16 results ahead of GM on April 19, 2016. Harley has been struggling to revive its stagnated demand in the US market. The company’s most profitable touring motorcycle segment saw lower demand, which hurt overall profitability. You can read about Harley-Davidson’s 1Q16 earnings results in our series Harley-Davidson’s Mixed 1Q16 Results: A Long and Winding Road.
In the next couple of weeks, other mainstream automakers, including Ford (F), Fiat Chrysler Automobiles (FCAU), and Ferrari (RACE), are scheduled to release their 1Q16 earnings.
Series overview
In this series, we’ll take a closer look at General Motors’ rising revenues and profitability. We’ll find out what factors drove GM’s 1Q16 earnings. We’ll also see how the company has been doing in the development of autonomous vehicles. Finally, we’ll take a look at some important factors that may drive GM’s valuation multiples in the coming quarters.
Browse this series on Market Realist:
