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Stock Market & Financial Investment News

News Breaks
July 23, 2014
13:45 EDTF, GMEarnings 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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January 14, 2015
15:33 EDTGMGeneral Motors reports 2014 deliveries up 2% to 9.92M vehicles
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09:26 EDTGMGeneral Motors says pricing 'quite aggresively' to offset forex in Russia
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09:24 EDTGMGeneral Motors CFO says 'confident' in ability to raise dividends in future
General Motors' Stevens says "mindful" of potential need to use significant cash in 2015 on legal matters and that its planning keeps that potential in mind. General Motors CFO Chuck Stevens is speaking at the Deutsche Bank Auto Industry Conference.
09:16 EDTGMOn The Fly: Pre-market Movers
HIGHER: ZIOPHARM (ZIOP), up 53% after the company and Intrexon (XON) announced a licensing agreement with University of Texas. Intrexon shares are also up 12%... GameStop (GME), up 10.6% after reporting holiday SSS, providing guidance for the fourth quarter and fiscal 2014, and being upgraded at Pacific Crest... Smith Micro (SMSI), up 12.7% after reporting preliminary fourth quarter revenue and providing revenue guidance for the first quarter and fiscal 2015... BioCryst (BCRX), up 3.2% after receiving a positive opinion on EMA orphan drug designation for BCX4161... GoPro (GPRO), up 1% following analyst remarks that sell-off after yesterday's report on Apple (AAPL) patent was "overdone." DOWN AFTER EARNINGS: JPMorgan (JPM), down 2.7%... Wells Fargo (WFC), down 2.2%... Banking peers down as well, with Bank of America (BAC) down 2.8% and Citi (C) down 2%. ALSO LOWER: Tesla (TSLA), down 9% following comments made by CEO Elon Musk at an automotive conference in Detroit regarding a slowdown in China... New Media (NEWM), down 4.8% after 7M share spot secondary priced at $21.70... General Motors (GM), down 3% after giving 2015 guidance, saying it is on track to meet previously announced 2016 financial targets... Apple (AAPL), down 1% following lawsuit against Ericsson (ERIC) and countersuit filing.
08:03 EDTGMGeneral Motors to increase CapEx to $9B in 2015
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08:03 EDTGMGeneral Motors on track to meet previously announced 2016 financial targets
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08:02 EDTGMGeneral Motors sees adjusted EBIT and EBIT-adjusted margin to increase in 2015
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07:34 EDTGMDeutsche Bank to hold a conference
2015 Global Auto Industry Conference is being held in Detroit on January 13-15 with webcasted company presentations to begin on January 14 at 7:15 am; not all company presentations may be webcasted. Webcast Link
January 13, 2015
16:02 EDTFConstellium to supply aluminium structural parts for Ford F150
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13:56 EDTGMGM open to partnering with Google on self-driving cars, Time says
GM (GM) would be open to having a discussion with Google (GOOG) about jointly developing self-driving cars, GM Chief Technology Officer Jon Lauckner said, according to Time Magazine. Reference Link
07:30 EDTFDeutsche Bank to hold a conference
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07:25 EDTF, GMNew NHTSA head says 2015 may see more recalls than record-setting 2014, WSJ says
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January 12, 2015
14:36 EDTGMGeneral Motors to spend $12B to launch new Cadillac models, Bloomberg says
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11:58 EDTGMAlly Financial could see 20% of originations hit by GM changes, says Jefferies
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11:05 EDTGMGM receives 141 more claims for faulty ignition switch compensation, Reuters say
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09:20 EDTFFord announces new collaboration with DowAksa for automotive carbon fiber
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06:24 EDTGMGM plans to use lending arm for subsized leases in the U.S., WSJ reports
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06:20 EDTFFord expected to debut Phoenix super car today, WSJ reports
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January 11, 2015
20:52 EDTGMGM Opel unit to build Buick models to sell in U.S., Reuters says
General Motors will announce that its Opel unit will manufacture a Buick version of the Opel Cascada for sale in the U.S., reports Reuters. Reference Link
17:59 EDTGMGeneral Motors plans to launch $30K EV rival to Tesla, WSJ says
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