General Motors Reports Third Quarter 2016 Net Income Of $2.8 Billion On Revenue Of $42.8 Billion
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General Motors has announced third quarter 2016 earnings highlighted by a net income of $2.8 billion and earnings per share (EPS) diluted of $1.76 on net revenue of $42.8 billion. The performance was driven by robust retail sales in the United States, strong performance in China, growth in wholesale volume and effective cost performance.
The $2.8 billion in net income is up 104 percent over the $0.84 billion reported in the third quarter of 2015, earnings per share (EPS) diluted of $1.76 is up 110 percent over the $$0.84 reported in the third quarter of 2015, and net revenue of $42.8 billion is up 10.3 percent over the $38.8 billion in the third quarter of 2015, while ROIC-adjusted was 30.6 percent, up 4.6 percent. The revenue and ROIC figures represent records for the automaker.
More third quarter 2016 results include:
- EBIT-adjusted of $3.5 billion, up 14.4 percent
- EBIT-adjusted margin of 8.3 percent
- EPS diluted-adjusted of $1.72, up 14.7 percent
- North America EBIT-adjusted of $3.5 billion
- Adjusted automotive free-cash-flow of $3.5 billion, up $2.7 billion
GM will release more Q3 2016 earnings information in the next hour. Stay tuned to GM Authority as we updated this page with details about the quarter.
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Aaaaaaaand shares are still down pre-market. They didn’t raise their end of year EPS though, staying at around 5.5 and 6.0. Maybe they expect a shitty Q4?
The biggest issue with the stock is that there is an expected down turn in the automotive market. As we have already seen sales are slipping on trucks and some cars. Ford already is shutting 3 truck plants down and the Mustang line due to slow sales.
The auto segment is just not a hot segment to invest in as market growth is not projected to do much.
As of now GM is holding cost down and increasing the ATP on most vehicles. They are tossing out low profit Fleet and adjusting to it well. As GM moves forward in a positive fashion they should see slow growth but going for all Automakers will be tough.
As of right not I would not invest in any automaker.
I expect more mergers and more failures of the weakest.
I agree seems to be the expected downturn. Hasn’t hit GM yet…and even when it does a plateau should still be profitable if managed correctly. FCA nixing margins is not a great sign though.
Europe holds a lot of potential negative along with expected downturn in NA.
Stock prices are a reflection of how GM’s product portfolio is missing out on sales of mid to small SUV’s . Which is driving sales of other automakers offering what the consumer wants right now . GM is trying to play catch-up .
This was the comments made on CNBC last night . GM can’t sustain this high TAP with low volume and decreased market share .
I don’t think you can compare this years sales perfomance against last years when GM’s profits were the best since 2007 and the total vehicle sales for the industry were the best ever ., something like 17-18 million units .
The fact is automakers are going to have to slow production because they have been running at capacity for a couple of years now . Thus returning to a more normal build year at their facilities and not running 3 shifts when the market is slowing .
They have the best SUV/Truck portfolio in the business. I agree they are missing a great small SUV’s, but their mid is high quality, and is preforming well.
Honestly no one has a great small SUV, the closest probably is Mazda CX3.
There should be more comments about this article than there is.
The financial results for GM are more important than any article on any future model because without excellent financial performance there would not be a wide range of up comming model.
If GM was not performing well financially they would have to kill all except core products, lay off employees and possibly kill models/brands.
Yes but many just don,t understand this part of the market. It is not a part many bench race.
Even here many do not understand some missing models are not here because GM can not even fix all the issues post bail out in less than 10-15 years in this age of multi billion dollar model programs with even higher engine and platform programs .
Be sure the folks with their jobs on the line know what is needed or is missing as much as the internet CEO.