General Motors tops analysts’ estimates for profit and sales in fiscal Q3.

  • General Motors tops analysts’ estimates for profit and sales in fiscal Q3.
  • The automaker reports £27.05 billion of revenue and £2.16 of adjusted EPS.
  • GM’s sales in China jumped 12% on a year over year basis in the third quarter.

General Motors Co. (NYSE: GM) published its earnings report for the fiscal third quarter on Thursday that topped analysts’ estimates for profit and sales. The company said that sales recovered faster than expected in Q3 in both its major markets, the U.S. and China, after months of halt due to the Coronavirus pandemic.

Shares of the company jumped close to 4% in premarket trading on Thursday but lost more than half of the intraday gain on market open. Including the price action, General Motors is now exchanging hands at £27.36 per share that represents an about 120% growth since its year to date low of £12.81 per share in March. Interested in investing in the stock market online? Here’s a simple guide to get you started.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

General Motors’ Q3 financial results versus analysts’ estimates

General Motors said that its net income in the third quarter printed at £3.09 billion that translates to £2.12 per share. In the same quarter last year, the automaker’s net income was capped at a much lower £1.79 billion or £1.22 per share.

Adjusted for one-time items, the American multinational corporation earned £2.16 per share. According to FactSet, experts had forecast a much lower £1.05 of per-share earnings for General Motors in the recent quarter. In separate news from the U.S., Bristol Myers Squibb also published its quarterly financial results on Thursday.

In terms of revenue, the Detroit-based company posted an increase to £27.05 billion versus the year-ago figure of a marginally lower £27.04 billion. FactSet Consensus for General Motor’s revenue in Q3 stood at a slightly lower £27.02 billion.

CFO John Stapleton’s comments on Thursday

The car manufacturer said sales in the United States posted an increase every month in the recent quarter. Interim CFO John Stapleton commented on the financial results on Thursday and said:

“Sales in the U.S. and China are recovering faster than many people expected, and GM is benefiting from robust customer demand for our new vehicles and services, especially for our full-size pickups and SUVs.”

On a year over year basis, GM’s sales in China were 12% higher in the fiscal third quarter, as per the report published in the second week of October.

General Motors performed modestly upbeat in the stock market last year with an annual gain of about 10%. At the time of writing, it is valued at £39.15 billion and has a price to earnings ratio of 34.16.

Article Source Our Partner invezz