GM optimistic in full year earnings, even with chip shortage
GM's 2021 net income may hit $11B in its reaffirmed forecast
General Motors CEO Mary Barra is confident the automaker can continue to drive profit growth for the rest of the year, even amid the semiconductor shortage roiling the industry.
This after the automaker posted $32.5 billion in revenue and adjusted earnings-per-share of $2.25, more than double what Wall Street was expecting. According to Refinitiv, analysts were looking for an EPS of $1.04 and $32.67 billion in revenue.
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GM stock was up sharply in pre-market trading on the news.
"While we will have production downtime in the second quarter, we expect to have a strong first half, with EBIT-adjusted of around $5.5 billion," CEO Mary Barra wrote in a note to investors.
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"We are also reaffirming our guidance for the full year, and based on what we know today, we see results coming in at the higher end of the $10 billion to $11 billion EBIT-adjusted range we shared earlier this year."
GM's first-quarter U.S. sales were up 3.9 percent year over year.