General Motors Stock Rises after Company Posts Strong Quarterly Profit
February 6, 2019|
General Motors stock is up by roughly 2 percent after the company reported its fourth-quarter earnings that beat analysts’ estimation.
GM post strong profits to reassure investors
General Motors Co. reported a very strong fourth quarter result that surpassed the estimates by most analysts and market experts. The company also presented an upbeat profit forecast for 2019, reassuring investors that the company would perform excellently this year. The quarterly results is good news for GM as it shows it can still compete despite slowing car demands in major markets and trading war issues between the United States and China.
GM earnings were $1.43 per share during the last quarter, beating the $1.25 average estimated by Wall Street analysts. Last month, the company had assured its investors that earnings per share could rise as high as $7 per share and they seem to be working towards that.
GM continues to make a profit from its trucks and sport utility vehicles. In this area, the company recorded a $6.54 per share earnings in 2018, which is better than the expected $6 per share.
General Motors told its investors that the Chinese auto market is expected to be flat this year. Its income from China dropped from $504 million a year ago to $307 million in the last quarter. For that reason, the company is taking action to reduce costs in China and improve profits in a softened market.