Proactive Investors - General Motors Company (NYSE:GM) shares fell more than 6% as investor concerns about its electric vehicle unit and performance in China overshadowed stronger-than-expected second quarter earnings.
The automaker’s EV deliveries grew 40% year-over-year in Q2 but made up just 2.3% of the quarter’s sales.
Meanwhile, its market share in China fell from 8.6% in the year-ago quarter to 6.4%.
Revenue of $47.7 billion topped Street estimates of $45.1 billion.
Adjusted earnings per share (EPS) were $3.06, up from $1.91 in the year-ago quarter and ahead of the consensus $2.67.
The company also raised its full-year earnings guidance, now expecting adjusted earnings before interest and taxes (EBIT) in the range of $13 billion to $15 billion, up from its prior guidance range of $12.5 billion to $14.5 billion.
It forecast adjusted EPS of $9.50 to $10.50, up from its earlier forecast of $9 to $10.
Analysts at Wedbush repeated their ‘Outperform’ rating and $55 price target on GM following a “solid” June report.
“We believe the long-awaited turnaround for the GM story is now underway with stable pricing across its portfolio while focusing more on margins and capital efficiency and [CEO Mary] Barra & Co driving this renaissance of growth into 2H 2024/2025,” they wrote.
“GM is continuing to deliver on its goals while raising its bottom-line guidance to consistently return excess in the bottom line and on track to achieve free cash flow to shareholders and optimize returns through repurchases and its heightened dividends.”
GM shares traded down 6.1% at $46.54 late morning on Tuesday.