GM earnings soar on improved supply chain issues
General Motors says its supply chain issues are improving. That allowed the company to post better-than-expected earnings despite falling short of revenue forecasts.
Posted — UpdatedAmerica's largest automaker said that by the end of June, it had been able to clear out of inventory about 75% of the roughly 90,000 vehicles it had not been able to complete because of missing parts.
"We're delivering on our commitments and affirming our full-year guidance despite a challenging environment, because demand continues to be strong for GM products," said GM CEO Mary Barra. "
Its earnings for the quarter came in at $2.25 a share, up 48% from a year earlier and far better than the $1.88 a share forecast by analysts surveyed by Refinitiv. But its revenue, while up 52% to $41.9 billion, was just short of forecasts of $42.2 billion.
Shares of GM rose 5% in premarket trading on the strong earnings and full-year earnings guidance of $6.50 and $7.50 a share, which gives it a solid chance to beat forecasts of $6.78 a share.
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