Who knew that a high school dropout will dominate the American auto Industry? A Buick Motor company heal William Crapo Durant made the right decision on spending $2,000 to establish General Motors on September 16, 1908. Now, the company’s is earning more than $43 billion on its Q4.
General Motor’s Q4 earnings impressive performance in 2016
2016 had been a blossoming year for General Motors Q4 earnings. With a cash balance of $20 billion allotted for their long term growth, 2016’s Q4 is expected to beat 2015 and they were right.
General Motor’s Q4 earning in 2016 is $43.9 billion in revenue, advancing 10.8 percent compared to 2015. Fourth quarter net income of $1.8 billion consists of a net loss from special items of $0.1 billion; a negative $0.3 billion foreign exchange influence related to the prior year. General Motor’s return on invested capital-adjusted rose 28.9 percent from 27.2 percent last 2015.
General Motor’s earned $4.3 billion for their auto operating cash flow, gained more than $2.1 billion from last 2015’s Q4. Their earnings before interests and tax-adjusted of $2.4 billion have a negative $0.5 billion foreign exchange influence related to above-mentioned year.
General Motors overall net revenue for the fiscal year 2016 is about $166.4 billion, advancing 9.2 percent compared to 2015’s full year results; earning $9.4 billion for net income and $14.3 billion for operating cash flow. General Motor’s earnings per share rose 1.5 percent by $6.00.
According to chairman and CEO Mary Barra, 2016 was a great year for the company and they are pretty much confident to achieve a much stronger result this 2017. General Motors is expecting an EPS-diluted of $6.00-$6.50 this 2017, either maintaining or improving its EBIT-adjusted.
2017 so far
General motor’s yields 4.2 percent and poised for a much stronger dividend growth for the next several years. It recently settled at $36.14 and currently pays a dividend of 38 cents a quarter to achieve the targeted yield.