Stifel Keeps GM (GM) at 'Hold' Following Q2 Results; GMNA Positive, but Adjustments/Global Volatility Concerning
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Stifel is out with commentary on General Motors (NYSE: GM) following the auto giant's Q2 report earlier Thursday.
Analyst James Albertine noted that GMNA sales and margin outperformed in the quarter, but adjustments and global volatility are keeping the analyst at Hold on the stock.
Albertine commented, GM reported adjusted 2Q15 EPS of $1.29 (GAAP EPS was $0.67) vs. our $1.09 model (Street: $1.08). Adjusted 2Q15 EPS excludes roughly $1.1 bn of one-time items related to: (1) $604 million currency devaluation adjustment and $116 asset impairment charge related to Venezuela subsidiaries in GMSA; (2) a $297 million asset impairment charge related to Thailand subsidiaries in GMIO; (3) a $75 million charge related to the ignition switch compensation program; (4) a $17 million of costs related to a change in business model in Russia in GME; and (5) other expenses of $1 million.
On GMNA, Albertine said, Reported retail unit sales of 965k vs. 930k in 2Q14, and a revenue increase of +3.2% y/y to $26.5 bn vs. our model of $25.3 bn (-1.6% y/y). PTI was $2.8 bn (10.5% margin) vs. our $2.5 bn model (9.9% margin).
For an analyst ratings summary and ratings history on General Motors click here. For more ratings news on General Motors click here.
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