GM stock rises after automaker boosts full-year guidance, reports Q2 earnings - Yahoo Finance

What the report says

Yahoo Finance reported that General Motors shares rose more than 3% in midday trading Tuesday after the automaker posted second-quarter results that beat Wall Street expectations and raised its full-year outlook for the second time this year. GM now projects adjusted EBIT of $14 billion to $16 billion, adjusted earnings per share of $12 to $14, and adjusted automotive free cash flow of $9.5 billion to $11.5 billion.

For the quarter, GM reported revenue of $48.03 billion, above Bloomberg consensus estimates of $46.61 billion and up from $47.1 billion a year earlier. Adjusted EPS came in at $3.57, compared with an expected $3.19, while adjusted EBIT reached $3.94 billion versus estimates of $3.7 billion. The company said its forecast factors in modest pricing gains, lower electric vehicle losses, regulatory benefits, tariff costs, and commodity inflation. CFO Paul Jacobson said tariff costs were about $900 million in the quarter and are expected to remain similar in the next two quarters.

Yahoo Finance noted that GM’s profit growth came despite weaker U.S. sales. The company sold about 715,000 vehicles in the United States in Q2, down 4.2% from a year earlier, while remaining the country’s top-selling automaker. GM attributed much of the decline to discontinued models and a drop in EV demand after the expiration of the federal EV tax credit.

The report said trucks and SUVs continued to support margins, with GMC Sierra sales rising 5% to a record quarterly level and GM saying it remains on pace to lead the full-size pickup segment. However, affordability remains a pressure point for buyers as high rates and elevated transaction prices weigh on demand.