GM Exceeds Wall Street’s Predictions During the Fourth Quarter of 2018
GM's revenue rose by 1.8 percent to $38.4 billion during the last quarter of the year
In recent years, the major domestic automakers have struggled to find success on Wall Street. Yet, every once in a while, one of these manufacturers manages to exceed Wall Street’s lofty expectations.
This was the case for General Motors during the fourth quarter of 2018, when its revenues rose by 1.8 percent to $38.4 billion.
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This stands in stark contrast to market predictions for GM’s fourth-quarter results. In fact, most analysts predicted that GM’s fourth-quarter revenues would actually decline by 3 percent.
GM’s overall market performance during 2018 managed to surprise quite a few investors. Profits for the year as a whole came in at $8.1 billion.
By comparison, GM’s yearly profits during 2017 were approximately $3.9 billion. That was the year GM sold off its Opel and Vauxhall brands.
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During the fourth quarter of the year, GM delivered earnings of $1.43 per share. Its earnings per share of the year as a whole were right around $6.54, ahead of forecasts predicting $6.29 per share.
Of course, this profitability was not achieved without GM making some tough decisions. The company recently idled five of its North American plants, while simultaneously cutting several sedans, such as the Chevrolet Cruze and Impala, from its lineup.
GM President Mark Reuss says that GM is expected to save $3 billion this year, thanks to its shifting strategy. By the end of 2019, GM plans to reduce its North American workforce by approximately 14,000 workers.
Though GM’s recent business initiatives may be considered controversial by many, Wall Street is evidently happy with the decisions the automaker has made.
News Source: NBC News