During a presentation on Tuesday, General Motors Company (GM) said it expected flat earnings in 2018 compared to the prior year and an increase in its profit in 2019, when it would introduce a renovated line of high-margin pickup trucks on the US market.
General Motors shares closed higher for the sixth time in the past ten trading sessions on Tuesday. The stock edged up 0.27% ($0.12) to $44.19, after touching an intraday high at $45.50, or a price level not seen since October 26th ($45.64).
In the week ended on January 14th the shares of the largest vehicle manufacturer in the United States added 0.14% to their market value compared to a week ago, which marked a second consecutive period of gains. Yet, it has been the smallest increase since the week ended on July 9th.
The stock has extended its advance to 7.81% so far during the current month, following a 4.87% slump in December. The latter has been the first monthly drop since May 2017.
For the entire past year, General Motors shares rose 17.65% following another 2.44% gain in 2016.
According to GM, the average transaction price of its Denali line of luxury pickup trucks is expected to be about $55 600, or higher than the average cost of Daimler’s Mercedes-Benz brand.
The auto maker said it would relocate some of the production of its new pickup trucks to a facility in Oshawa, Ontario, while it modernizes its Ft. Wayne, Indiana plant. This way GM expects to manufacture up to 60 000 pickups and also to prevent missing sales.
The company projects its full-year 2017 earnings per share to be at the high end of a range it forecast previously – $6.00 to $6.50. In comparison, analysts on average expect full-year 2017 earnings of $6.30 per share.
At the same time, GM projects its full-year 2018 earnings per share to be almost equal to those in 2017, while analysts expect earnings of $5.98 per share this year.
The auto maker also projects total capital expenses of approximately $8.5 billion in 2018. Of that amount, approximately $1 billion is to be invested in self-driving vehicle technology. In the years that follow total capital expenditure should be reduced, according to GMs Chief Financial Officer Chuck Stevens.
Meanwhile, GMs fourth-quarter earnings are to take a $7 billion non-cash charge associated with deferred tax assets, the value of which is expected to shrink because of the recently-passed US corporate tax rate cut.
According to CNN Money, the 23 analysts, offering 12-month forecasts regarding General Motors Companys stock price, have a median target of $48.00, with a high estimate of $60.00 and a low estimate of $31.00. The median estimate is an 8.62% surge compared to the closing price of $44.19 on January 16th.
The same media also reported that 10 out of 25 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while other 10 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the General Motors stock are presented as follows:
R1 – $44.32
R2 – $44.45
R3 (Range Resistance – Sell) – $44.58
R4 (Long Breakout) – $44.98
R5 (Breakout Target 1) – $45.44
R6 (Breakout Target 2) – $45.62
S1 – $44.06
S2 – $43.93
S3 (Range Support – Buy) – $43.80
S4 (Short Breakout) – $43.40
S5 (Breakout Target 1) – $42.94
S6 (Breakout Target 2) – $42.76
By using the traditional method of calculation, the weekly levels of importance for General Motors Company (GM) are presented as follows:
Central Pivot Point – $43.79
R1 – $44.98
R2 – $45.88
R3 – $47.07
R4 – $48.25
S1 – $42.89
S2 – $41.70
S3 – $40.80
S4 – $39.89
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