Shares of the General Motors Company gained 4.48 percent, or $1.38, in value during the week of July 21st, 2016 as the automaker blew away analyst expectations by reporting record earnings for the second quarter of 2016.
The timeline of events reveals an interesting picture:
- Monday, July 18th: GM shares open the day (and the week) at $30.78
- Tuesday, July 19th: GM shares see a slight gain to $31.24 at market close
- Wednesday, July 20th — the day prior to the release of GM’s Q2 2016 earnings: GM stock closes at $31.51
- Thursday, July 21st: GM releases Q2 2016 earnings, stock jumps to $32.79 in early morning trading and closes the day at $32.03
- Friday, July 22nd: stock makes even more gains, closing the week at $32.16
- After hours trading on Friday saw a decrease to $32.15
Highlighted by a net income of $2.9 billion and earnings per share (EPS) diluted of $1.81 on net revenue of $42.4 billion, GM’s Q2 2016 earnings set a record for the automaker’s second quarter performance. Of particular interest is the fact that each significant fiscal metric was up for the quarter, causing the automaker to raise its forecast for the second half of 2016.
In addition, the firm also declared a third quarter 2016 dividend of $0.38 per share.
However, despite the impressive 4.48 percent rally and third quarter dividend announcement, GM shares continue to be valued lower than the initial public offering price of $33 per share in November 2010.