General Motors Co. (GM) Wednesday reported a profit for the first-quarter that surged from last year, driven by strong price and mix performance in North America, strong credit and residual value performance at GM Financial, as well as the industry recovery in China.
Earnings per share topped analysts’ expectations, while quarterly revenues missed their estimates.
The company said it reaffirmed its guidance for the full year 2021, and expects results coming in at the higher end of the $10 billion to $11 billion EBIT-adjusted range it shared earlier this year.
Looking ahead for fiscal year 2021, the company expects net income to be in the range of $6.8 billion – $7.6 billion or $4.28 – $5.03 per share, and adjusted earnings of $4.50 – $5.25 per share. Analysts expect annual earnings of $5.24 per share.
The company noted that it will have production downtime in the second quarter. But it expects to have a strong first half, with EBIT-adjusted of around $5.5 billion.
General Motors’ first-quarter net income attributable to common stockholders surged to $2.98 billion or $2.03 per share from $247 million or $0.17 per share in the same quarter last year.
Adjusted net income for the quarter was $3.29 billion or $2.25 per share, compared to $899 million or $0.62 per share in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.04 per share for the first-quarter. Analysts’ estimates typically exclude special items.
Total net sales and revenue for the quarter declined 0.7 percent to $32.47 billion from $32.71 billion last year. Analysts expected revenues of $32.67 billion for the first-quarter.
In Wednesday pre-market trade, GM was trading at $57.10 up $1.76 or 3.18 percent.
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