What better way to assure your company has an earnings bomb? Have Jim Cramer tout it before earnings of course. Sure enough from January 28: “GM sales are going to be superb”, and “Europe’s coming back.” Fast forward to today when GM reports Q4 revenues of $40.5 billion which missed expectations of $40.9 billion, and EPS of $0.67 vs the $0.87 expected. Additionally, GM’s global market share just dropped to 11.4% – matching the lowest in the past year.
So much for the superb sales. As for Europe? Well, as the chart below shows, Europe just posted its weakest quarter in the past year…
And don’t count on much growth either: CapEx was down to $7.5 billion in 2013, from $8.1 billion in 2012, even as the company’s total free cash flow declined from $4.3 billion last year to just $3.7 billion.
And all this even despite the second highest channel stuffing in post-bankrutpcy company history:
Sure enough, stock does this:
Finally, heeeeeeere’s Cramer.