GM Breaks From Gloom With Surprise Forecast for Profit Gain

(Bloomberg) -- Forget about doom and gloom: General Motors Co. said that it will grow profit in 2019 even as global auto sales level off and investors have been expecting a tough year. Shares jumped the most intraday in almost three months.

• The Detroit-based automaker projected 2019 adjusted earnings will rise to between $6.50 and $7 a share, easily exceeding analysts’ $5.92-a-share average estimate. GM also said it will exceed the high end of its profit forecast for last year, which was $6.20 a share.

Key Insights

Market Reaction

• GM shares surged as much as 8.7 percent to $37.75 as of 9:45 a.m. in New York. The stock is the biggest gainer in the S&P 500 on Friday and is bouncing back some from last year’s 18 percent plunge.

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• GM also affirmed that Cadillac will be the first to sell an electric vehicle using GM’s all-new battery platform.
• Read GM’s statement

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