General Motors' Stock Jumps As Results Blow Past Expectations

By Tomi KilgoreMarketsMarketWatch Pulse

General Motors Co.'s stock ran up 5.4% in premarket trade Thursday toward a three-month high, after the car maker reported second-quarter profit and sales that were well above expectations and raised its full-year outlook. Earnings for the latest quarter rose to $2.9 billion, or $1.81 a share, from $1.1 billion, or 67 cents a share, in the same period a year ago. Adjusted earnings per share came in at $1.86, beating the FactSet consensus of $1.52. Revenue rose to $42.4 billion from $38.2 billion, above the FactSet consensus of $38.2 billion. Global vehicle sales were flat at 2.4 million. For 2016, GM raised its adjusted EPS outlook to $5.50 to $6.00 from $5.25 to $5.75; the FactSet consensus is $5.66. "Our results were generated by strong retail sales in the U.S., record sales in China and a continued emphasis on improving the performance of our operations worldwide," said Chief Executive Mary Barra. The stock has declined 7.4% year to date through Wednesday, while the S&P 500 has tacked on 6.3%.

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