Post Earnings Coverage as General Motors’ Q4 Results Topped Projections

Upcoming AWS Coverage on SORL Auto Parts

LONDON, UK / ACCESSWIRE / February 27, 2017 / Active Wall St. announces its post-earnings coverage on Co. (NYSE: GM). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on February 07, 2017. The Detroit, Michigan-based Company’s quarterly total net sales and revenue grew 10.8% y-o-y, beating market consensus estimates. Register with us now for your free membership at:

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One of General Motors’ competitors within the Auto Manufacturers – Major space, SORL Auto Parts, Inc. (NASDAQ: SORL), is estimated to report earnings on March 30, 2017. AWS will be initiating a research report on SORL Auto Parts following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on GM; touching on SORL. Get our free coverage by signing up to:

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Earnings Reviewed

In Q4 FY16, General Motors reported total net sales and revenue of $43.92 billion compared to $39.62 billion reported in Q4 FY15. Total net sales and revenue numbers for the reported quarter had outperformed market expectations of $42.20 billion.

The automobile Company reported GAAP net income attributable to stockholders of $1.84 billion, or $1.19 per diluted share, in Q4 FY16 compared to $6.27 billion, or $3.92 per diluted share, in Q4 FY15. The Company’s diluted adjusted EPS for the reported quarter stood at $1.28 per diluted share, declining $0.11 per diluted share from diluted adjusted EPS recorded in Q4 FY15. Wall Street had expected the Company to report diluted adjusted EPS of $1.14.

For full year FY16, General Motors’ revenue was $166.38 billion which came in 9.2% above the $152.36 billion reported in FY15. The Company reported net income attributable to stockholders of $9.43 billion, or $6.00 per diluted share in FY16 compared to $9.69 billion, or $5.91 per diluted share, in FY15. Additionally, the Company’s adjusted net income for FY16 stood at $9.61 billion, or $6.12 per diluted share, compared to $8.23 billion, or $5.02 per diluted share, in FY15.

Operating Metrics

During Q4 FY16, General Motors’ total operating segments profit stood at $2.82 billion compared to $3.00 billion in the previous year’s corresponding period. The segment’s adjusted EBIT came in at $2.39 billion in Q4 FY16 versus $2.77 billion in last year’s comparable quarter. Furthermore, in Q4 FY16, General Motors sold 2.78 million vehicles, up 3.3% on a y-o-y basis. In December 2016, the Company’s global volume of 1.05 million units was the highest in its history. For FY16, General Motors sold 3.04 million vehicles in the US and increased retail share by 0.5%.

Segment Performance

General Motors North America (GMNA) revenues rose to $31.29 billion during Q4 FY16 from $27.67 billion in the prior year’s same quarter. The segment’s adjusted EBIT fell to $2.6 billion in Q4 FY16 from $2.8 billion in Q4 FY15. Furthermore, adjusted EBIT margins were down to 8.4% in Q4 FY16 from 10.0% in the previous year’s same quarter.

In the reported period, General Motors Europe’s (GME) revenues fell to $4.42 billion from $4.7 billion in Q4 FY15. The segment reported a negative adjusted EBIT of $0.2 billion in Q4 FY16, narrower than negative adjusted EBIT of $0.3 billion recorded in the year ago comparable quarter.

During Q4 FY16, General Motors International Operations (GMIO) operations’ revenues were down to $3.28 billion from $3.45 billion in the last year’s same quarter. The segment’s Q4 FY16 adjusted EBIT was $0.3 billion, marginally falling from $0.4 billion in Q4 FY15.

General Motors South America (GMSA) segment’s revenues grew to $2.21 billion in Q4 FY16 from $1.88 billion in the prior’s year corresponding quarter. However, the segment reported a negative adjusted EBIT of $0.1 billion in Q4 FY16 compared to break-even results in Q4 FY15.

General Motors’ Financial segment revenues surged during Q4 FY16 to $2.69 billion from $1.88 billion in Q4 FY15. The segment’s EBIT for the reported quarter stood at $0.2 billion, which came in-line with EBIT numbers recorded in the year-ago same quarter.

Cash Flow & Balance Sheet

During the year ended on December 31, 2016, General Motors generated $16.55 billion in cash from operations compared to $11.69 billion at the end of quarter in the year ago same period. In the reported financial year, the Company’s adjusted automotive free cash flow was $6.87 billion versus $2.20 billion in FY15. The Company had cash and cash equivalents balance of $12.96 billion as on December 31, 2016, compared to $15.24 billion, at the close of books on December 31, 2015. Furthermore, the Company had Automotive long-term debt and Financial long-term debt amounting to $9.59 billion and $46.02 billion, respectively, as on December 31, 2016.

Dividend and Share Repurchases

On February 06, 2017, General Motors’ Board of Directors declared quarterly dividend of $0.38 per share payable on March 24, 2017, to shareholder of record at the close of business on March 10, 2017.

During Q4 FY16 the Company repurchased $1.0 billion shares totaling $2.5 billion shares buyback in full year FY16. Furthermore, the Company completed its first $5 billion share repurchase authorization and started the second share repurchase authorization of $4 billion.

Outlook

In its guidance for full year FY17, General Motors’ management expects diluted EPS and adjusted diluted EPS to be in the range of $6.00 to $6.50. Additionally, the Company projects a $15 billion in automotive operating cash flow; whereas adjusted automotive free cash flow for FY17 is anticipated to be $6 billion.

Stock Performance

On Friday, February 24, 2017, the stock closed the trading session at $36.90, marginally falling 0.94% from its previous closing price of $37.25. A total volume of 13.03 million shares have exchanged hands. General Motors’ stock price surged 10.32% in the last three months, 18.78% in the past six months, and 31.21% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 5.91%. The stock is trading at a PE ratio of 6.15 and has a dividend yield of 4.12%.

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