General Motors Co. reported on Tuesday afternoon first-quarter earnings below Wall Street expectations, but stocks traded higher during the extended session after an initial fall as investors applauded the intact guidance of the Wall Street. car manufacturer for the year and its guarantees on vehicle demand.
Orientation has not changed thanks to GM’s “strong demand” for vehicles, as well as the company’s “cost discipline” and growth path, CEO Mary Barra said in a call with analysts after GM announced quarterly results.
it said it earned $ 2.9 billion, or $ 1.35 per share, during the quarter, compared to $ 3.02 billion, or $ 2.03 per share, in the period last year. Adjusted for single items, GM earned $ 2.09 per share.
Revenue rose to $ 35.89 billion from $ 32.47 billion a year ago.
Analysts polled by FactSet expected GM to report adjusted earnings of $ 1.65 per share with revenue of $ 36.9 billion.
Barra and other GM executives expressed confidence in GM’s shift to electric vehicles and autonomous driving, and said they trusted the business despite a “difficult” macroeconomic environment.
In the call, CFO Paul Jacobson said GM was “watching very closely” inflation trends and rising commodity costs, and said the company has a history of managing them. pressures.
“The world is very dynamic right now, and what you don’t want to do is overreact,” Jacobson said.
GM said it expects net income for the full year of 2022 to be between $ 9.6 billion and $ 11.2 billion, and reaffirmed the adjusted EBIT earnings guide of $ 13 billion to $ 15 billion.
GM improved its earnings per share outlook adjusted to a range of $ 6.50 to $ 7.50 for the year, from a previous expectation of $ 6.25 to $ 7.25.
Also read: GM and Honda are setting their sights on making electric vehicles cheaper
GM bought Softbank Vision Fund stake in Cruise earlier this year for $ 2.1 billion, expanding its commitment to the autonomous driving unit.
Barra said GM increased its stake in Cruise to 80%, from 60%, “because we are extremely optimistic about the rapid progress towards marketing.”
“We will have more news on cruises to share as we complete the authorization process to charge for trips to San Francisco,” Barra said.
He said a “significant part” of his long-term compensation, as well as the compensation of senior executives, will be linked to the achievement of EV goals.
GM shares have lost more than 34% in the last 12 months, in contrast to gains of around 1% in the S&P 500 SPX index.
in the same period of time.