Analyst slashes GM price target in half, citing steep second-quarter loss

Hurricane · 08-04-2008, 07:41 AM

Ahead of the Bell: General Motors
Monday August 4, 8:15 am ET
Analyst slashes GM price target in half, citing steep second-quarter loss

NEW YORK (AP) -- A Credit Suisse analyst on Monday slashed his price target and earnings estimates for General Motors Corp., citing the automaker's $15.5 billion second-quarter loss.
Christopher J. Ceraso cut his price target for GM by half to $7, predicting that the Detroit-based company will burn through as much as $6.2 billion in cash in the second half of this year.

"Every region fell short of our forecast, but the majority of the disappointment relative to our earnings-per-share forecast came from North America (a $4.4 billion loss versus our forecast loss of $2.2 billion), and GMAC (a loss of $1.2 billion, vs. our forecast loss of $100 million)," Ceraso wrote in a note to investors.

Ceraso moved his third-quarter estimate to a loss of $3.27 per share from a loss of $2.60 per share and fourth-quarter estimate to a loss of $2.60 per share from a loss of $1.90 per share.

Analysts, on average, expect per-share losses of $1.89 and $2.18 for the third and fourth quarters, respectively, according to a poll by Thomson Financial.

For the full year, Ceraso said he expects GM to post a loss of $17.69 per share, down from his previous prediction of a loss of $7.81 per share. Analysts expect a loss of $6.34 per share.

The analyst also said that he now expects GM to post a per-share loss of $9.30 for 2009, down from his previous prediction of a loss of $1.91. For 2010, Ceraso cut his per-share profit estimate by 76 cents to $2.55 per share.

"GM has dug itself a very deep hole, from which it will be difficult to fully extricate itself," Ceraso said, referencing the 2010 estimate.

"Even assuming an about 2 million-unit rebound in U.S. industry demand and significant help from the 2007 UAW agreement, we still think GM North America will lose money."

Analysts, on average, expect a per-share loss of $3.33 per share in 2009 and a profit of $2.75 per share in 2010.

More here: http://biz.yahoo.com/ap/080804/gener...bell.html?.v=1

Buickman · 08-04-2008, 07:51 AM

standing by prediction of $5 mid August.

Hurricane · 08-04-2008, 08:07 AM

Quote:

Originally Posted by Buickman

standing by prediction of $5 mid August.

You might very well be right, LOL!

skylark68 · 08-04-2008, 09:43 AM

How are other industries doing right now, outside of automotive? I imagine just about everyone is getting hammered. How long before people call this what it is (a recession)?

fp115 · 08-04-2008, 09:46 AM

Quote:

Originally Posted by skylark68

How are other industries doing right now, outside of automotive? I imagine just about everyone is getting hammered. How long before people call this what it is (a recession)?

The plane industry and food industry are also hard hit.

JeffInDFW · 08-04-2008, 12:49 PM

I disagree. Plenty of industries are thriving right now. Oil, for example. Also, the oil industry is doing REALLY well. Oh, and don't forget the incredible profits being posted by oil right now.

Chaz_23 · 08-04-2008, 01:18 PM

Who would have thought. GM stock on their way to costing pennies. Nice job, Rick.

Whitesky · 08-04-2008, 02:48 PM

Quote:

Originally Posted by skylark68

How are other industries doing right now, outside of automotive? I imagine just about everyone is getting hammered. How long before people call this what it is (a recession)?

Because as bad as things are, we are still not in a recession.

wolverine · 08-12-2008, 02:17 PM

Quote:

Originally Posted by Buickman

standing by prediction of $5 mid August.

Sometimes when people try to be prophetic they just end up looking pathetic.

Jesda · 08-12-2008, 02:58 PM

Recession is a specific economic term. You don't just call it out on a whim because things seem slow.

jeep2c · 08-13-2008, 07:52 AM

Quote:

Originally Posted by Buickman

standing by prediction of $5 mid August.

Did you predict Toyota's US profit would drop 99% in the second quarter?

prowlerjc · 08-13-2008, 09:24 AM

Quote:

Originally Posted by wolverine

Sometimes when people try to be prophetic they just end up looking pathetic.

You mean like chicken little screaming about "$200 per barrel by the end of the summer?"

wolverine · 08-13-2008, 12:43 PM

Quote:

Originally Posted by prowlerjc

You mean like chicken little screaming about "$200 per barrel by the end of the summer?"

Yeah, kinda like that, too.

E. Haskell · 08-13-2008, 01:07 PM

Quote:

Originally Posted by prowlerjc

You mean like chicken little screaming about "$200 per barrel by the end of the summer?"

Imagine if GM followed the business advice of these arm chair quarterbacks.

08-04-2008, 07:41 AM	#1 (permalink)
Hurricane 5.3 Liter Vortec V8 Join Date: Sep 2003 Posts: 1,344	Analyst slashes GM price target in half, citing steep second-quarter loss Ahead of the Bell: General Motors Monday August 4, 8:15 am ET Analyst slashes GM price target in half, citing steep second-quarter loss NEW YORK (AP) -- A Credit Suisse analyst on Monday slashed his price target and earnings estimates for General Motors Corp., citing the automaker's $15.5 billion second-quarter loss. Christopher J. Ceraso cut his price target for GM by half to $7, predicting that the Detroit-based company will burn through as much as $6.2 billion in cash in the second half of this year. "Every region fell short of our forecast, but the majority of the disappointment relative to our earnings-per-share forecast came from North America (a $4.4 billion loss versus our forecast loss of $2.2 billion), and GMAC (a loss of $1.2 billion, vs. our forecast loss of $100 million)," Ceraso wrote in a note to investors. Ceraso moved his third-quarter estimate to a loss of $3.27 per share from a loss of $2.60 per share and fourth-quarter estimate to a loss of $2.60 per share from a loss of $1.90 per share. Analysts, on average, expect per-share losses of $1.89 and $2.18 for the third and fourth quarters, respectively, according to a poll by Thomson Financial. For the full year, Ceraso said he expects GM to post a loss of $17.69 per share, down from his previous prediction of a loss of $7.81 per share. Analysts expect a loss of $6.34 per share. The analyst also said that he now expects GM to post a per-share loss of $9.30 for 2009, down from his previous prediction of a loss of $1.91. For 2010, Ceraso cut his per-share profit estimate by 76 cents to $2.55 per share. "GM has dug itself a very deep hole, from which it will be difficult to fully extricate itself," Ceraso said, referencing the 2010 estimate. "Even assuming an about 2 million-unit rebound in U.S. industry demand and significant help from the 2007 UAW agreement, we still think GM North America will lose money." Analysts, on average, expect a per-share loss of $3.33 per share in 2009 and a profit of $2.75 per share in 2010. More here: http://biz.yahoo.com/ap/080804/gener...bell.html?.v=1 __________________ 2007 Yukon XL Denali 2006 Chevrolet Corvette

08-04-2008, 07:51 AM	#2 (permalink)
Buickman 5.3 Liter Vortec V8 Join Date: May 2005 Location: Flint MI Drives: 08 Enclave Posts: 1,376	Re: Analyst slashes GM price target in half, citing steep second-quarter loss standing by prediction of $5 mid August. __________________ Buickman Founder www.GeneralWatch.com It's not sunk, but's its definitely sinking. We don't need a Volt, we need a Revolt!

08-04-2008, 09:43 AM	#4 (permalink)
skylark68 3.6 Liter V6 Join Date: Sep 2006 Location: Pearland, TX Drives: 1989 GMC Suburban 1968 Buick Skylark Posts: 1,130	Re: Analyst slashes GM price target in half, citing steep second-quarter loss How are other industries doing right now, outside of automotive? I imagine just about everyone is getting hammered. How long before people call this what it is (a recession)? __________________ The Mechanic: You'd have yourself a real street-sweeper here if you put a little work into it. G.T.O.: I go fast enough. The Driver: You can never go fast enough.

08-04-2008, 12:49 PM	#6 (permalink)
JeffInDFW 3.5 Liter V6 Join Date: Jan 2003 Posts: 256	Re: Analyst slashes GM price target in half, citing steep second-quarter loss I disagree. Plenty of industries are thriving right now. Oil, for example. Also, the oil industry is doing REALLY well. Oh, and don't forget the incredible profits being posted by oil right now.

08-04-2008, 01:18 PM	#7 (permalink)
Chaz_23 6.0 Liter Vortec V8 Join Date: Jan 2007 Posts: 1,539	Re: Analyst slashes GM price target in half, citing steep second-quarter loss Who would have thought. GM stock on their way to costing pennies. Nice job, Rick.

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08-12-2008, 02:58 PM	#10 (permalink)
Jesda 3.8 Liter Supercharged V6 Join Date: Dec 2004 Location: St Louis MO Drives: Infiniti Q45 Posts: 583	Re: Analyst slashes GM price target in half, citing steep second-quarter loss Recession is a specific economic term. You don't just call it out on a whim because things seem slow. __________________ 2004 BMW 325ci convertible - BMW I6 motor + GM 5-speed automatic, 1992 Cadillac Seville STS www.CADILLACOWNERS.com --Automobile Magazine, May 2004- T-boned, 6/20/2008

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