Core Viewpoint - General Motors reported strong fourth-quarter earnings, with adjusted earnings per share of $2.51, a 30.4% increase year over year, surpassing analyst expectations of $2.20, although sales of $45.287 billion fell short of the anticipated $45.804 billion [1] Group 1: Earnings and Forecasts - The company forecasts adjusted earnings of $9.75 to $10.50 per share for fiscal 2026, which is below Wall Street's expectation of $11.73 [1] - RBC Capital analyst Tom Narayan raised the price forecast for GM from $92 to $107 while maintaining an Outperform rating [2] - The analyst estimates that adjusted EBIT for fiscal 2026 could improve by an additional $500 million due to tariff-related gains, totaling $600 million year over year [2][3] Group 2: Market Position and Projections - The analyst believes that GM is well-positioned to manage potential slowdowns in EV demand while maintaining production flexibility to scale up if demand rebounds [3] - Narayan projects strong pricing discipline and approximately $6 billion in shareholder returns, which represents about 8% of the market cap [3] - The analyst raised EPS estimates for fiscal 2026 to $13.07 from $12.20 and revenue estimates to $169 billion from $171 billion [4] Group 3: Stock Performance - At the time of publication, General Motors shares were down 1.63% at $84.97, approaching a 52-week high of $87.31 [4]
General Motors Outlook Looks Conservative, Says Analyst