GM, Target Up On Earnings; Oil Extends Rally

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Shares of General Motors (GM) were up 1% in pre-market activity after the automaker reported its first yearly profit since 2004.

The company earned $4.7 billion in 2010, its best performance since 1999, when it posted $6 billion* in profit.

For the fourth quarter, GM said it earned $500 million, or 31 cents a share, compared to a year-ago loss, on revenue of $36.9 billion. Analysts expected earnings of 49 cents a share on revenue of $34.30 billion. Yet, the quarter’s results include charges of 21 cents a share, related tothe previously disclosed $700 million loss on the purchase of U.S. Treasury preferred shares, GM reported.

Target (TGT) inched upward before the bell, as its fourth-quarter profit jumped 11%. The retailer said it earned $1.04 billion, or $1.45 a share, up from $1.24 a share, in the year-earlier period. Analysts were expecting EPS of $1.39 a share. The quarter included a tax benefit equivalent to 7 cents a share.

In contrast to main rival Wal-Mart (WMT), which has seen comps declining, Target saw same store sales up 2.4%. The company’s credit card business quadrupled, and its promotion giving card holders a 5% discount on numerous purchases spurred demand.

However, investors were still fretting over oil Thursday morning, as it established its hold over the $100 mark. In Libya, rebels continued to extend their hold and vowed to take the capital.

Crude for April delivery waffled around the $100 mark, while Brent crude, a European benchmark, soared above $115.



Original Article Source by Barrons.com