General Motors Co (NYSE: GM)
Shares of General Motors rallied in premarket trade on Wednesday after the company reported higher than anticipated financial results for its 2018 third-quarter, which came to a close on September 30.
The Detroit-based company was not significantly affected by the US-China trade war that has seen most automakers report higher material costs. The automaker posted a 25% rise in operating profit that was boosted by sales of pricier SUVs and trucks in the U.S.
In the same period last year, the company posted a loss after selling part of its European business to PSA Group for $2.3 billion. GM stock rose lost about 10% before the opening bell, putting it on track for its best day in five months.
GM Earnings & Outlook
The company announced earnings of $2.5 billion for the quarter, compared with a loss of $2.98 billion in the year-earlier period. On a per share basis, GM earned $1.75, up from a loss of $2.03 in the comparable quarter a year ago.
Excluding special items, earnings came to $1.87 per share in during the third quarter. Net revenues jumped 6% to $35.79 billion, from $33.62 billion in the third quarter of the previous year.
Analysts polled by Refinitiv had modeled adjusted earnings of $1.25 per share and revenue of $34.85 billion.
For the full year, the automaker forecasts earnings in the range of $5.80 and $6.20 per share, compared with its earlier guidance of $6.00 per share.
General Motors Executive Comments
Mary Barra, Chairman and Chief Executive Officer, said, “Our third-quarter performance demonstrates our determination to manage risks and deliver strong business results while continuing to advance the future of mobility.”
Chief Financial Officer Dhivya Suryadevara also commented, “Our disciplined approach to the U.S. market, combined with strength in China and further growth of GM Financial, drove a very strong quarter. We will continue to take actions to mitigate headwinds including foreign currency volatility and commodity costs.”
General Motors Company Profile
General Motors Company, together with its subsidiaries, designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, and GM Financial segments.
It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, Jiefang, and Wuling brand names. The company also sells cars, trucks, and crossovers to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments.
In addition, it offers connected safety, security, and mobility solutions, as well as information technology services. Further, the company provides automotive financing services. General Motors Company was founded in 1897 and is based in Detroit, Michigan. – Yahoo Finance