Q4 Preview: Europe in Focus for General Motors (GM) Investors
Tweet
Share
E-mail
Get Alerts GM Hot Sheet
Price: $87.93 +2.07%
Rating Summary:
28 Buy, 13 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
28 Buy, 13 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Shares of General Motors (NYSE: GM) closed nearly 2 percent lower Wednesday heading into the automaker's fourth-quarter earnings report, expected out before the market opens Thursday.
The Street is looking for earnings growth of 31 percent to 41 cents per share on revenue of $38.2 billion.
Shares gained about 0.5 percent through the quarter and are up about 23 percent since the end of the last quarter. Shares of GM have traded within a range of $19.00 to $36.84 over the last 52-week time frame.
Sales in the U.S. were mixed for the last three months of 2011: October sales rose 1.7 percent, November saw a 7 percent jump, and December sales increased 4.5 percent.
Data from Bloomberg has 16 analysts with a Buy rating on GM, five at Hold, and none with a Sell. The Street's price target average is $32.50, with a low of $22 and high of $36.
Deutsche Bank believes most investors will be focusing on European earnings. The firm said, "GM’s issues in Europe appear to be more related to price than cost. This is a broad industry issue. And short of an industry restructuring, pricing will be difficult to improve. On the cost side, we see the potential for GM to consolidate 1-2 plants, and consolidate global platforms. But this would not likely happen in the short-term, and it is likely to be very expensive. In the near-term, the company is not as uncompetitive as many believe (breakeven point was lowered significantly in 2011), and decremental margins in 2012 may likely be mitigated through government-sponsored shortened work-week programs."
According to Deutsche, EPS should be about 32 cents with EBIT of $868 million.
Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out GM's past performance at Streetinsider's GM's Income Statement.
The Street is looking for earnings growth of 31 percent to 41 cents per share on revenue of $38.2 billion.
Shares gained about 0.5 percent through the quarter and are up about 23 percent since the end of the last quarter. Shares of GM have traded within a range of $19.00 to $36.84 over the last 52-week time frame.
Sales in the U.S. were mixed for the last three months of 2011: October sales rose 1.7 percent, November saw a 7 percent jump, and December sales increased 4.5 percent.
Data from Bloomberg has 16 analysts with a Buy rating on GM, five at Hold, and none with a Sell. The Street's price target average is $32.50, with a low of $22 and high of $36.
Deutsche Bank believes most investors will be focusing on European earnings. The firm said, "GM’s issues in Europe appear to be more related to price than cost. This is a broad industry issue. And short of an industry restructuring, pricing will be difficult to improve. On the cost side, we see the potential for GM to consolidate 1-2 plants, and consolidate global platforms. But this would not likely happen in the short-term, and it is likely to be very expensive. In the near-term, the company is not as uncompetitive as many believe (breakeven point was lowered significantly in 2011), and decremental margins in 2012 may likely be mitigated through government-sponsored shortened work-week programs."
According to Deutsche, EPS should be about 32 cents with EBIT of $868 million.
Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out GM's past performance at Streetinsider's GM's Income Statement.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Zurn Water Solutions (ZWS) Reiterated at Buy by Stifel on New Product Development Momentum
- Deutsche Bank monitors UK auto sales as Chinese exports grow
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
Deutsche Bank, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
