General Motors Hits the Gas
Shares of General Motors (NYSE:GM) were sent racing to the upside on Wednesday following the company’s third quarter earnings report. On Wednesday, the company posted a better-than-expected quarterly profit on strong results in its core North American market and a smaller-than-predicted weakness within its European business segment. Net income for common shareholders fell to $757 million, or 45 cents a share in the third quarter, compared with $1.48 billion, or 89 cents a share, in the year-earlier quarter. Excluding one-time items related to the repurchase of preferred stock and tax expenses, GM earned 96 cents a share, 2 cents more than analysts on the street had predicted.
GM was able to offset weaker than expected earnings out its international segment through continued strength out of its North American segment. In GM’s international operations, which include China and South America. The international earnings fell to $299 million from $761 million last year as the markets outside China were a drag. The company posted third-quarter earnings excluding items of 96 cents per share, up from 93 cents a share in the year-earlier period. On the top line General Motors generated revenues of $39 billion from $37.58 billion a year ago.These results came in better than anticipated on the bottom line and in line on the top line. Analysts had predicted the automaker to report earnings excluding items of 94 cents a share on $39.49 billion in revenue, according to a consensus estimates from Thomson Reuters.
Shares of the company were to the upside by over 3 percent to $37.23 at the end of the day on Wednesday. Going into the rest of the week it is likely we see a number of analyst updates and modifications. These recommendations may add more than expected volatility to shares.
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