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Stock Market & Financial Investment News

News Breaks
July 23, 2014
13:45 EDTGM, FEarnings Preview: General Motors to take Q2 charge up to $1.2B on recalls
General Motors Company (GM) is expected to report second quarter earnings on Thursday, July 24 before the market open with a conference call scheduled for 10:00 am ET. General Motors is a global designer and builder of cars, trucks and automobile parts. EXPECTATIONS: Analysts are looking for earnings per share of 58c on revenue of $40.59B, according to First Call. The consensus range for EPS is 50c-74c on revenue of $39.74B-$41.53B. LAST QUARTER: GM reported Q1 EPS of 6c against estimates for 4c on revenue of $37.4B against estimates for $38.43B. On its Q1 earnings conference call, GM said its core operating performance was on plan for the year. It noted GMNA and consolidated International operations were performing as planned, with Europe and China performing better than plan, and GMSA performance weaker due to challenging environments in Venezuela and Brazil. On its Q1 earnings conference call, GM said it was on track to break-even in Europe by mid-decade, and no meaningful slowdown in U.S. sales had been seen after the recall. GM CEO Mary Barra said the company remained "optimistic" on its 2014 U.S. sales performance despite negative publicity related to its ongoing ignition switch recall and associated legal matters. Barra saw the ability to do repairs increasing in coming months, and expected to have sufficient parts to be able to complete the majority of recall-related repairs by October. She expected the need for loaner cars related to recalls to be "significantly reduced" by Q3. On June 30, GM announced it will conduct six new safety recalls in the United States involving about 7.6M vehicles from the 1997-2014 model years. Among these recalled vehicles, GM was aware of seven crashes, eight injuries and three fatalities. GM expects to take a charge of up to approximately $1.2B in Q2 for the cost of recall-related repairs announced in the quarter. This amount includes a previously disclosed $700M charge for recalls already announced during Q2. STREET RESEARCH: Street research has been mixed in the weeks leading up to GMs Q2 earnings report. On June 26, Sterne Agee said GM and Ford (F) shares should be owned. After meeting with the management of Ford (F) and GM, Sterne Agee thought the companies' European businesses were improving, while pricing was favorable for them. The firm believed that the stocks were at an inflection point. On July 14, UBS said Ford should beat Q2 estimates, while General Motors will miss. UBS believed Ford (F) will beat Q2 estimates while General Motors (GM) will miss due to recall costs. Were it not for the recall charges, UBS thought GM would post solid underlying results. UBS, which thought Ford is likely to see a strong second half as product launch costs are already factored into guidance, raised its price target on the stock to $22 from $18. UBS increased its GM price target to $54 from $49. The firm kept Buy ratings on both stocks. PRICE ACTION: GM shares have traded higher by about 10% since Q1 results were released, but are up only about 3% over the past year. In afternoon trading ahead of Thursday's Q2 report, GM shares are down fractionally.
News For GM;F From The Last 14 Days
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September 12, 2014
06:22 EDTGMGeneral Motors issues 'stop delivery' order for new Corvettes, WSJ reports
A "stop delivery" order on 2015 Chevrolet Corvettes has been ordered by General Motors, the Wall Street Journal reports. According to a spokesman, the automaker wants to fix two potential problems -- a parking brake issue and an air bag problem -- with the car before they leave the Bowling Green, KY plant or dealer lots. Reference Link
September 11, 2014
13:35 EDTFFord's Lincoln to launch Navigator marketing push, Automotive News says
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06:51 EDTGMGM to reveal 40 new vehicles in India, other countries, Reuters says
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06:04 EDTGMGeneral Motors to roll out OnStar in Europe, Re/code reports
General Motors (GM) is planning to roll out its OnStar service beyond the U.S. and Canada to parts of Europe, Re/code reports. The service is powered by AT&T (T). Reference Link
September 10, 2014
09:17 EDTF, GMChina mulls easing car dealer restrictions, Bloomberg says
China's Ministry of Commerce is considering whether to ease rules on car dealers and allow them to sell vehicles from multiple brands in the same store, according to Bloomberg, citing people familiar with the matter. Note that both Bitauto (BITA) and Autohome (ATHM), which operate automobile buyer focused websites in China, were down significantly during yesterday's trading, though it is unclear if the reported new regulations play a role in their share weakness. Publicly traded carmakers include Fiat (FIATY), Ford (F), General Motors (GM), Honda (HMC), Nissan (NSANY), Toyota (TM) and Volkswagen (VLKAY). Reference Link
08:02 EDTGMGM calls Canadian dealer 'ambush' allegations overblown, Globe & Mail reports
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September 9, 2014
10:57 EDTGMMobileye climbs after analyst says GM, Tesla using technology
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09:16 EDTGMMobileye technology being used by GM, Tesla, says William Blair
William Blair believes both General Motors (GM) and Tesla (TSLA) are using Mobileye (MBLY) technology for their announced self-driving capabilities. The firm notes that over the past two days, GM and Tesla noted their intentions of offering vehicles with autonomous driving capability in the next 24-36 months. William Blair says the recent announcements confirm its bullish outlook on Mobileye's market opportunity. The firm has an Outperform rating on the stock. Shares of Mobileye are rallying 5%, or $2.61, to $55.62 in pre-market trading. Morgan Stanley also upped its price target this morning on the name to $65 from $46.
07:17 EDTFThe Wireless Association to hold a conference
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06:52 EDTGMGM JV in China recalls over 38K Cadillac sedans, Reuters says
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06:09 EDTGM, FVerizon CEO sees self-driving cars 3-5 years away, Detroit News reports
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September 8, 2014
17:47 EDTFFord downgrade a buying opportunity, Barron's says
Ford's downgrade at Morgan Stanley is a buying opportunity and investors should buy the dip, Barron's argues in its 'Barron's Take' column. Reference Link
13:26 EDTF, GMFord falls after two notch downgrade at Morgan Stanley
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13:04 EDTGM, FAugust vehicle sales drop in Russia, WSJ says
The Association of European Businesses said that the sales of new vehicles in August throughout Russia have dropped at the quickest rate so far in 2014, according to The Wall Street Journal, citing a statement from chairman of the AEB Automobile Manufacturers Committee Joerg Schreiber. Industry officials are anticipating sales in the country for 2014 to decrease another 20% after a 5% decline last year. Publicly traded companies in the automobile industry include Fiat (FIATY), Ford (F), General Motors (GM), Honda (HMC), Nissan (NSANY), Toyota (TM) and Volkswagen (VLKAY). Reference Link
10:06 EDTFOn The Fly: Analyst Downgrade Summary
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09:12 EDTFOn The Fly: Pre-market Movers
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07:59 EDTGM, FMorgan Stanley downgrades Auto sector to Cautious, downgrades Ford
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07:14 EDTGMGM board slow to react on safety, NY Times says
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06:29 EDTFFord downgraded to Underweight from Equal Weight at Morgan Stanley
Morgan Stanley downgraded Ford two notches to Underweight from Overweight and lowered its price target to $16 from $17. The firm recommends reducing positions due to competitive pressures, cycle maturity, high expectations, and execution risk to the new truck changeover.
September 7, 2014
20:02 EDTGMGM to introduce hands free Cadillac model in two years, Bloomberg says
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