General Motors exceeds analysts’ third quarter earnings and sales estimates.
The automaker reported sales of £27.05 billion and £2.16 adjusted EPS.
GM’s sales in China increased 12% year-on-year in the third quarter.
General Motors Co. (NYSE: GM) released its third-quarter earnings report on Thursday, which exceeded analysts’ earnings and sales estimates. The company said third-quarter sales in its two main markets, the U.S. and China, recovered faster than expected after months of stagnation due to the coronavirus pandemic.
The company’s shares rose nearly 4% in Thursday’s pre-trade trading, but lost more than half of the intraday profit at market opening. Including the price action, General Motors is now trading at £27.36 per share, a growth of about 120% since its year-to-date low of £12.81 per share in March. Are you interested in investing in the stock market online? Here is a simple guide to help you get started.
General Motors’ financial results for the 3rd quarter compared to analysts’ estimates
General Motors said its third quarter net profit was printed at £3.09 billion, or £2.12 per share. In the same quarter last year, the carmaker’s net profit was capped at a much lower figure of £1.79 billion or £1.22 per share.
Adjusted for one-off effects, the US multinational earned £2.16 per share. According to FactSet, experts had forecast significantly lower earnings per share of £1.05 for General Motors in the last quarter. In separate news from the U.S., Bristol Myers Squibb also published its quarterly financial results on Thursday.
In terms of revenue, the Detroit-based company reported an increase to £27.05 billion compared with the previous year’s figure of slightly lower £27.04 billion. The FactSet consensus for General Motor’s third quarter revenues was slightly lower at £27.02 billion.
CFO John Stapleton’s comments on Thursday
The automaker said that sales in the United States increased every month in the last quarter. Interim CFO John Stapleton commented on Thursday’s financial results and said
“Sales in the U.S. and China are recovering faster than many expected, and GM is benefiting from robust customer demand for our new vehicles and services, particularly our full-size pickups and SUVs.
Year-over-year, GM’s sales in China were 12% higher in the third quarter of the fiscal year, according to the report released in the second week of October.
General Motors showed a slightly positive performance last year with an annual profit of around 10% on the stock market. At the time of writing this report, the company is valued at £39.15 billion and has a price-earnings ratio of 34.16.