Autos

General Motors earnings beat Wall Street expectations on strong crossover and China sales

Key Points
  • General Motors adjusted earnings: $1.32 per share, vs expected EPS of $1.12
  • Revenue: $33.6 billion vs. $32.72 billion expected by Thomson Reuters.
General Motors CFO: Expect to see another strong year in US
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General Motors CFO: Expect to see another strong year in US

General Motors third-quarter earnings beat analysts' expectations on Tuesday, driven in part by especially strong sales of crossovers in the US and sales in China.

Here's how the company did compared to what Wall Street expected:

  • Adjusted EPS: $1.32 vs. $1.12 expected by a Thomson Reuters survey.
  • Revenue: $33.6 billion vs. $32.72 billion expected by Thomson Reuters.

The largest U.S. automaker posted a net loss of $2.98 billion, or $2.03 per share, compared with a profit of $2.77 billion, or $1.17 per share a year earlier.

In the latest period, earnings were hurt by the sale of its Opel/Vauxhall unit in Europe to France's PSA Group. Excluding that charge, the company outpaced Wall Street's expectations by a wide margin.

GM earned $1.32 per share on an adjusted basis. Analysts surveyed by Thomson Reuters were expecting the company to earn $1.12 per share.

Third-quarter revenue fell 13.5 percent from a year earlier to $33.6 billion. However, the sales were stronger than the expected $32.72 billion by analysts in the Thomson Reuters survey.

"We delivered solid results even with planned, lower third-quarter production in North America," GM CEO Mary Barra said in a statement. "We are managing the business with discipline to drive strong performance today, while investing in higher-return opportunities, including those that will shape the future of transportation."

The automaker reiterated that it expects full year earnings per share to be $6-$6.50, compared with an analysts consensus of $6.29.

GM took steps to slow down and in some cases temporarily halt production at several factories during the quarter, which reduced wholesale volume by 26 percent over the same quarter in 2016. The move lessened U.S. dealer inventory by 160,000 units over the quarter.

GM's sales were led by a 25 percent increase in crossover sales, the company's best third-quarter performance for the segment so far.

GM deliveries in China were up 12.3 percent over the third quarter of 2016, setting a record for the period.

GM shares were up 4 percent in during premarket trading on Tuesday.

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