General Motors (GM) breaks Q3 earnings estimates and confirms talking to him Nicola (NKLA) continues on a potential electric truck production partnership. GM stock rose, and Nicola jumped.
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GM earnings
Estimate: Wall Street expects GM’s earnings to fall 15% to 47 1.47 per share. According to Zacks Investment Research, revenue rose 7% to ઝ 38.02 billion, although other estimates were .5 35.5 billion.
Results: EPS.564..5 billion dollars, including an increase of one per cent in the revaluation of PSA Group on sales of ડ 5.5 billion. GM North America brought Q3 results behind strong truck demand and cost-cutting actions. China’s profit a year ago was flat at a loss of about 100 million. Cruz reduced the loss to about મિ 200 million from 300 300 million a year ago.
GM generated 1 9.1 billion in omot tomative free cash flow, an increase of 4 5.4 billion year-over-year. Margins have risen to 14.9% from 8.4% a year ago. It ended the quarter with the 8 8.8 billion automotive liquidity, after paying rev..8 billion of its revolving credit facilities.
Q. In, GM’s vehicle sales in the U.S. Was down 10% but improved every month in the quarter. All-new crossovers and SUVs, as well as larger pickup trucks, led the results. This is likely to have increased the average transaction price, offsetting a reduction in transaction volume. Also, GM’s China sales rose 12% in the quarter.
Outlook: GM pulled its 2020 guidance in March.
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GM stock
The stock rose 2.7% to 36.19 in trading on Thursday. GM stocks are above the 50-day line and 33.43 flat-base by points, according to Marketsmith Charts analysis.
Ford (F), which crushed Q3 scenarios last week, rose 1.7% early Thursday. Fiat Chrysler (FCAU), which also beat for Q3, advanced 2%. Nicola shares were up 7.6%. Tesla (TSLA) added 3.8% y.
The relative strength of GM stocks is increasing in the line multiear downtrend. The RS line measures the performance of the stock against the S&P 500. It is the blue line in the chart shown.
General Motors-Nicola negotiations
On Thursday, GM CEO May Bara confirmed that talks were underway with Nicola.
Earlier, the proposed GM partnership with Nicola got into trouble after the founder of the electric truck startup hit out at allegations of fraud and sexual assault. While negotiations continue, either party can terminate the deal if it does not close by December 3.
Meanwhile, Nicola Nov 9. Reports Q3 earnings on.
General Motors began restructuring in late 2018, shutting down plants and laying off workers. But the pace of change, the global downturn in auto sales and finally the coronavirus epidemic took GM stock by a decade.
Between these headwinds, GMA confirmed its shift toward the future of self-driving vehicles and -l-electric cars. It plans 20 new EVs by 2023, including a Hummer truck and a Cadillac SUV.
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