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General Motors (GM) Q2 Earnings Beat, Revenues Miss

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General Motors Company (GM - Free Report) is a leading global automotive company based in the U.S. The automaker is focused on investment in innovative technologies and vehicles which should provide sustained growth while maximizing shareholder value. The company is also gaining new contracts to expand its business.

However, falling sales volume in the U.S., high inventory and increasing recalls are concerns.

Estimate Trend & Surprise History

Investors should note that the second-quarter earnings estimate for General Motors has declined over the last week.

General Motors has delivered positive earnings surprises in the past few quarters. It surpassed the Zacks Consensus Estimate in each of the trailing 4 quarters with an average beat of around 17.83%.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

During the quarter, General Motors’ adjusted earnings came in at $1.89 per share. The prior-year quarter adjusted earnings were 1.79 per share. The bottom line comfortably beat the Zacks Consensus Estimate of $1.72.

Revenues

General Motors reported revenues of $37 billion, down 12.7% from the year ago quarter figure. Revenues also missed the Zacks Consensus Estimate of $40.25 billion.

Key Stats/Developments to Note

During the quarter, total sales delivered in the U.S. were 725,000 vehicles, which were driven by 24% increase in crossover sales.
 
The second quarter crossover performance is the best in the history of General Motors.

Zacks Rank

Currently, General Motors has a Zacks Rank #5 (Strong Sell), but that could change following its earnings report which has just released.

 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Market Reaction

General Motors’ share price has decreased 1.7% in pre-market trading so far after the automaker released the second quarter results. Clearly, the initial reaction to the report is positive.

Check back later for our full write up on General Motors’ earnings report!

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