Automaker General Motors Co. (GM) reported Friday significantly higher profit in its first-quarter with strong growth in automotive and financial sales and higher volume. Earnings per share and revenues topped market estimates. Further, the company backed its fiscal 2017 adjusted earnings view.
In pre-market activity on the NYSE, GM shares were gaining 1.94 percent to $35.21.
Mary Barra, Chairman & CEO, said, “Our first-quarter results reflect our resolve to grow profitably and demonstrate the strong earnings power of this company. More importantly, we advanced our strategic plan to transform GM for the long term and unlock more value for our shareholders.”
For the first quarter, the company reported net income of $2.61 billion, up 33.5 percent from last year’s 1.95 billion. Earnings per share grew 37.1 percent to $1.70 from $1.24 last year.
The prior year’s results included charges, excluding which earnings were $1.99 billion or $1.26 per share last year.
On average, 18 analysts polled by Thomson Reuters expected earnings of $1.46 per share for the quarter. Analysts’ estimates typically exclude special items.
Earnings before interest and tax or EBIT was $3.40 billion, a growth of 27.9 percent on an adjusted basis from last year. EBIT margin of 8.2 percent grew 1.1 points.
North America EBIT climbed 48.8 percent on an adjusted basis, and margin grew 300 basis points, with strong volume, pricing and cost efficiencies.
Total net sales and revenue of $41.2 billion increased 10.6 percent from $37.27 billion a year ago. Analysts expected revenues of $40.32 billion for the quarter.
The company attributed the growth in earnings and revenue mainly to robust retail sales of full-size trucks and crossovers in the United States, continued growth of GM Financial and effective cost performance around the globe.
Automotive revenues grew to $38.33 billion from last year’s $35.20 billion. North America revenue of $29.3 billion increased 10.7 percent. GM Financial net revenue of $2.9 billion climbed 38.7 percent.
In the first quarter, GM delivered 689,521 total vehicles in the United States, driven by a 16 percent increase in crossover deliveries and a 3 percent increase in truck deliveries. The company said these results included the best first-quarter retail sales since 2008, as GM increased U.S. retail market share to an estimated 16.9 percent, up 0.3 percentage points â the fastest growth of any full-line automaker.
In China, retail deliveries decreased 5.2 percent to 913,442 vehicles, due to a reduction in the country’s vehicle tax purchase incentive.
Looking ahead, for fiscal 2017, the company continues to expect adjusted earnings in a range of $6.00 to $6.50 per share. Analysts expect earnings of $6.01 per share for the year.
In the year, the company expects to recognize a charge of approximately $4.5 billion or $2.94 per share.
Including the charge, the company now expects reported earnings per share between $3.06 and $3.56.
For the year, the company still…