General Motors Co. (NYSE: GM) shares jumped on Friday after the company provided guidance for its 2019 full year. The automaker also updated investors on its strategic plan for growing earnings this year.
For 2019, GM expects earnings per share (EPS) in the range of $6.50 to $7.00 and automotive free cash flow between $4.5 billion and $6.0 billion. Consensus estimates call for $5.88 in EPS and $144.54 billion in revenue.
In terms of 2018 numbers, the firm expects to beat its previous forecast, issued in October, calling for EPS of $5.80 to $6.20.
Despite a declining car market in 2019, GM expects the overall U.S. market to remain strong, projecting total industry sales in the low 17-million range. The company expects to benefit from a full year of volume from GM’s all-new Chevrolet Silverado and GMC Sierra light-duty full-size pickups. The trucks have contributed to retail market share growth in the light-duty pickup segment every month since August, with average transaction prices that have surpassed those of key competitors.
As for electric vehicles, Cadillac will be GM’s lead electric vehicle brand and will introduce the first model from the company’s all-new battery electric vehicle architecture, GM’s foundation for an advanced family of profitable EVs.
Separately, GM expects to start launching its all-new global family of vehicles in 2019 in China, followed by South America and Mexico. The first crossover model will be the Chevrolet Tracker. These vehicles are expected to capture growth in key global markets and represent one-in-10 GM vehicles sold globally by 2020.
Shares of GM were last seen up about 8% at $37.53, in a 52-week range of $30.56 to $45.52. The consensus analyst price target is $45.09.