General Motors Co (NYSE: GM) announced its fiscal 2019 second-quarter earnings ahead of the opening bell on Thursday, August 1. Shares of the Detroit-based automaker beat on both the top and the bottom line, sending its shares up 2.87% to $41.51 in pre-market trading session.
GM operating profit fell 5.6% as sales fell across key markets internationally. The company’s income from China was $235 million, down from last year’s income of $592 million.
GM also reported a 12% decline in revenue from its China market. General Motors shares have risen more than 7% on a year-over-year basis and have climbed more than 21% so far this year.
GM Earnings & Outlook
General Motors posted second-quarter net income of $2.38 billion, or $1.66 per share, compared with $2.38 billion, or $1.66 per share the previous year. On average, analysts surveyed by Refinitiv were expecting adjusted earnings of $1.44 per share. Excluding restricting costs, the company earned $1.64 per share from April through June.
Company wide revenue fell 2% to $36.06 billion compared to $36.8 billion on a year-over-year basis. Analysts polled by Refinitiv had been calling for a revenue of $35.97 billion in the quarter.
International vehicle sales fell 6% to $1.94 million, due to declines in Asia Pacific, North America, Africa, and the Middle East. General Motors also said that sales in China were low, and they are not expecting any change in fiscal 2019.
The company still forecasts earnings of between $6.50 to $7 per share for the full year. GM also plans to roll out more full-size pickups before the end of the year.
General Motors Executive Comments
“Our results demonstrate the earnings power of our full-size truck franchise, with more upside to come. We will continue operating our business with discipline, and the vision needed to deliver a stronger future for our employees, customers and shareholder,” said Mary Barra, GM Chairman and Chief Executive Officer.
“We had a solid second quarter, and expect the second half of the year to be stronger than the first half. Our confidence in our full-year outlook is based on our strong full-size truck rollout, other key launches and ongoing cost savings,” commented Dhivya Suryadevara, GM Chief Financial Officer.
General Motors Profile
General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under three segments: GM North America, GM International, and GM Financial.
The United States now has four brands instead of eight. The company remains the market leader in the U.S. with 17% share in 2018. GM Financial became the company’s captive finance arm in October 2010 via the purchase of AmeriCredit. – Warrior Trading News
