GM Sets Goals For 2017, Sees Strength In North America And China

General Motors Co. said Tuesday it expects adjusted per-share earnings of $6.00 to $6.50 for 2017. The current FactSet consensus is for 2017 EPS of $5.71. The company said it further expects to maintain or improve its EBIT-adjusted margin on higher revenues. EBIT is earnings before interest and taxes. The company's board has approved an additional share buyback program of up to $5 billion, bringing the total authorization to $14 billion. The company is adding $1 billion to its cost savings target, which now totals $6.5 billion. The 2017 outlook is based on expectations for strong growth in North America and China, growth at GM Financial, cost savings, improvement in South America and continued strong car launches. Shares jumped 5.6% on the news, pushing 12-month gains to 29%, while the S&P 500 has gained about 18%.