GM expects a strong first half of the year despite production interruptions due to chip shortages
General Motors employees work on the assembly line at the Fairfax Assembly & Stamping Plant in Kansas City, Kansas.
Jim Barcus for General Motors
DETROIT – General Motors reported first quarter results on Wednesday that slightly outperformed Wall Street earnings expectations. A strong first half was expected despite an ongoing global semiconductor die shortage that has resulted in factory closures.
Here’s how GM performed compared to Wall Street expectations based on Refinitiv’s average estimates.
Adapted EPS: $ 2.25 versus $ 1.04 expected based on average analyst estimates made by Refinitiv.
Revenue: Expected $ 32.47 billion versus $ 32.67 billion.
GM confirmed its profit guidance for the year. The company projected adjusted pre-tax profit and adjusted free cash flow for automobiles of $ 10-11 billion, or $ 4.50-5.25 per share, of $ 1-2 billion including earnings of in 2021 $ 1.5 billion to $ 2 billion and a decrease in free cash flow of $ 1.5 billion to $ 2.5 billion.
At the end of the first quarter, GM CFO Paul Jacobson told investors he was “increasingly confident” that the automaker would meet its profit targets for the year despite the chip shortage.
Results aside, Wall Street expects CEO Mary Barra and other executives to look into a number of other topics – from guidance updates for 2021 and an ongoing global semiconductor die shortage to electric and autonomous vehicles.
GM reported adjusted pre-tax profit of $ 1.3 billion, or 62 cents per share, in the first quarter of 2020 as the coronavirus began factory closings. Revenue for the quarter was $ 32.7 billion. On an unadjusted basis, net income was $ 2.2 billion.
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