General Motors On Tuesday, despite record operating profit, it missed Wall Street earnings forecasts for the second quarter. We have also raised this year’s guidance.
Here’s how GM compared what Wall Street expected based on the average estimates compiled by Refinitiv:
- Adjusted EPS: $ 1.97 vs. $ 2.23 Expected
- Revenue: $ 34.17 billion vs. forecast $ 30.9 billion
GM’s second-quarter revenue was reduced by approximately $ 1.3 billion in warranty recall costs, including $ 800 million associated with the Chevrolet Bolt EV.Electric cars have been recalled twice in the past year Because of the danger of fire, Recently last month.
Automakers raise adjusted year-round guidance from $ 11.5 billion to $ 13.5 billion, or $ 5.40 to $ 6.40 per share, from $ 10 billion to $ 11 billion, or from $ 4.50 to $ 5.25 per share. rice field.
GM shares fell about 4% during pre-market trading to $ 55.70 per share.
On an unadjusted basis, second-quarter net income was $ 2.8 billion, but a loss of $ 758 million. 1 year ago, When a coronavirus pandemic caused a rolling shutdown of the factory. Automakers reported second-quarter pre-tax adjusted profit of $ 4.1 billion, up from a loss of $ 536 million in the year-ago quarter.
“Everyone has shown amazing resilience and adaptability in this rapidly changing environment,” GM CEO Mary Barra said in a phone call with reporters Wednesday.
Adjusted revenue Second quarter record, In 2016, it exceeded GM’s adjusted earnings by $ 3.9 billion, or $ 1.86 per share.
GM has overcome the challenges of the global shortage of semiconductor chips. This will close the factory and is expected to reduce industry revenues by billions of dollars in 2021.
Tuesday’s GM Three full-size pickup truck assembly plants in North America closed Next week is out of stock.
Automakers have previously said they expect a $ 1.5 billion to $ 2 billion reduction in revenue due to a chip shortage. GM CFO Paul Jacobson refused to update these expectations on Wednesday because changes in the situation and higher-than-expected profits helped offset these effects.
“The tip represents a little more of the lost opportunity, although it might have been really better, but this year it’s actually going pretty well and all of our initial expectations of exceeding what we expected. I think I’ve overcome it earlier this year. “
The company said it expects EBIT adjustments in the first half to range from $ 8.5 billion to $ 9.5 billion due to continued strong demand, better-than-expected performance at GM Financial and short-term production improvements. rice field. This is an increase from the $ 5.5 billion forecast earlier this year.
GM misses Wall Street second-quarter earnings forecast and raises 2021 guidance
Source link GM misses Wall Street second-quarter earnings forecast and raises 2021 guidance