GM's Net Income Plunged: Why You Shouldn't Care and Why It's Still a Buy
If all investors did was see that General Motors' (NYSE: GM) net income plunged 19% during the first quarter, down to $2.4 billion from the prior year, you might think it was a rough quarter. That would, of course, miss the fact that the decline was driven by a "Voluntary Separation Program" and that Detroit automaker beat expectations and also raised full-year guidance.
Further, investors need to understand that declining net income wasn't a sign of poor vehicle pricing, bad inventory management, or lack of demand; it was rather a sign of GM's employee buyout cost -- which is also a part of business when avoiding layoffs.
Source Fool.com
General Motors Corp Stock
€41.96
1.490%
Our community is currently high on General Motors Corp with 33 Buy predictions and 5 Sell predictions.
As a result the target price of 46 € shows a slightly positive potential of 9.63% compared to the current price of 41.96 € for General Motors Corp.
