NEW YORK (TheStreet) -- General Motors Co. (GM) - Get General Motors Company (GM) Report stock continued with yesterday's modest losses, closing down by 0.51% to $33.15 on Friday, after the company reported a 3.1% year-over-year decline in its third quarter sales, with 2.33 million vehicles sold worldwide.
Growth in North America and Europe offset drops in South America, China and other international sales.
Sales in South America declined 30.8% to 150,142, while China sales were down 4.2% to 773,226 and other international sales dropped 10.3% to 191,847.
North American sales increased 5.2% to 930,758 and European sales grew 1.1% to 287,690.
"Our unwavering focus on the customer is paying off in our largest and most important markets," President Dan Ammann said in a statement. "At the same time, we have reacted quickly to challenging macroeconomic environments in other markets and have shown the discipline to exit situations where we see no long-term path to acceptable reutns."
For the first nine months of the year, sales are down 1.3% worldwide, with only North America and China seeing gains of 4.9% and 1.6%, respectively.
GM will release its third quarter earnings results next Wednesday before the market open.
Separately, TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate GENERAL MOTORS CO (GM) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Automobiles industry. The net income increased by 301.8% when compared to the same quarter one year prior, rising from $278.00 million to $1,117.00 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Automobiles industry and the overall market, GENERAL MOTORS CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Net operating cash flow has significantly increased by 51.07% to $5,786.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.44%.
- GENERAL MOTORS CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAL MOTORS CO reported lower earnings of $1.64 versus $2.35 in the prior year. This year, the market expects an improvement in earnings ($4.51 versus $1.64).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.3%. Since the same quarter one year prior, revenues slightly dropped by 3.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: GM