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General Motors Misses on Q2 Revenue, EPS in line, Shares Slump

Published 07/25/2018, 07:05 AM
Updated 07/25/2018, 07:17 AM
© Reuters.  GM updates full-year forecast based on bleaker outlook
GM
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Investing.com – Shares in General Motors fell in pre-market trade on Wednesday as the company reported second quarter results and warned of headwinds in the second half of 2018.

GM reported diluted adjusted earnings per share of $1.81 in the April to June period, in line with consensus. The company reported $36.8 billion in revenue. Economists had estimated revenues of $37.09 billion. The company also offered an update to its guidance for 2018.

“Recent and significant increases in commodity costs and unfavorable foreign exchange impact of the Argentine peso and Brazilian real have negatively affected business expectations,” GM warned.

“Because the company anticipates these headwinds will continue through the second half of 2018, it has revised its full-year outlook,” the company explained.

GM now forecasts a full-year EPS diluted of approximately $5.14 with the diluted-adjusted EPS of approximately $6.

“We faced significant external challenges, but delivered solid results this quarter,” GM chair and chief executive Mary Barra said in the press release.

“The fundamentals of our business are strong and we remain focused on our plan – delivering great vehicles, developing technologies to transform personal mobility and creating long-term shareholder value,” she added.

At 7:17 AM ET (11:17 GMT), shares in General Motors (NYSE:GM) slid 4.48% to $37.71, compared to the previous closing price of $39.48.

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