Shares of General Motors Co. were losing more than 6 percent in the early morning trading on the NYSE after the automajor reported Tuesday weak sales volume in its second quarter, mainly in China, and trimmed its fiscal 2024 earnings forecast on a reported basis. However, the company raised its annual adjusted earnings view after reporting higher second-quarter earnings and revenues above market estimates.
For the full year, the company now expects net income attributable to stockholders of $10 billion to $11.4 billion, lower than previously expected $10.1 billion to $11.5 billion.
Earnings per share are now expected to be $8.93 to $9.93, down from earlier estimate of $8.94 to $9.94.
However, the company raised its outlook for adjusted earnings per share to $9.50 to $10.50 from previous view of $9.00 to $10.00.
Analysts on average expect the company to report earnings of $9.71 per share, according to figures compiled by Thomson Reuters. Analysts\' estimates typically exclude special items.
The company also raised its outlook for annual EBIT-adjusted to $13.0 billion to $15.0 billion from previously expected $12.5 billion to $14.5 billion.
In its second quarter, GM reported a profit that increased from last year and beat the Street estimates. The company\'s bottom line came in at $2.93 billion or $2.55 per share, compared to $2.57 billion or $1.83 per share, in last year\'s second quarter.
GM\'s autonomous vehicle company Cruise LLC recorded restructuring charge of $583 million in the quarter after the firm voluntarily paused its driverless, supervised and manual AV operations in the U.S. and the indefinite delay of the Cruise Origin.
Adjusted earnings were $3.51 billion or $3.06 per share for the period, compared to $1.91 per share a year ago. Analysts had expected the company to earn $2.75 per share.
The company\'s revenue for the quarter rose 7.2 percent to $47.97 billion from $44.75 billion last year. The Street was looking for revenues of $45.46 billion.
Automotive revenues grew to $44.06 billion from last year\'s $41.25 billion. GM Financial revenues were $3.91 billion, higher than prior year\'s $3.49 billion.
Cruise recorded revenues of $25 million, slightly down from last year.
In the quarter, wholesale vehicle sales by automotive segment was 1.04 million units, higher than prior year\'s 979 thousand units.
GM\'s total vehicle sales worldwide was 1.43 million units, down from 1.58 million units last year.
Total North America vehicle sales in the quarter were 827 thousand units, higher than prior year\'s 805 thousand units, while China sales fell to 373 thousand units from prior year\'s 526 thousand units.
On the NYSE, GM shares were trading at $46.35, down 6.48 percent.
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