Detroit, Michigan, USA: General Motors Co. (GM) on Wednesday reported a profit for the fourth quarter, compared to a loss in the year-ago period that included a non-cash charge related to the U.S. tax reform. Both revenue and adjusted earnings per share for the quarter beat analysts’ estimates. The automaker’s shares are rising almost 4 percent in pre-market activity.
According to GM, the latest quarter’s results were led by strong performance in GM North America, including strong pricing for GM’s all-new full-size pickup trucks – the Chevrolet Silverado and GMC Sierra.
Fourth-quarter net income attributable to GM common stockholders was $2.01 billion or $1.40 per share, compared to net loss of $5.17 billion or $3.65 per share in the year-ago period.
The year-ago period’s results include a non-cash charge related to U.S. tax reform of $7.3 billion.
Excluding items, adjusted earnings for the quarter were $1.43 per share, compared to $1.65 per share last year. On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.22 per share. Analysts’ estimates typically exclude special items.
Net sales and revenue for the quarter increased 1.8 percent to $38.40 billion from $37.72 billion in the year-ago period. Wall Street expected revenues of $36.48 billion.
GM’s adjusted earnings before interest and taxes or adjusted EBIT decreased 8.3 percent to $2.83 billion from $3.09 billion last year.
In North America, GM reported adjusted EBIT of $3.04 billion, up from $2.88 billion in the year-ago period, reflecting the strength of the company’s full-size truck franchise and ongoing cost discipline that helped offset commodity headwinds and downtime volume impact.
Through December 31, 2018, GM sold 8.4 million vehicles globally, down 12.7 percent from the prior year.
Earnings highlights for General Motors Company (GM)
-Earnings: $2.01 billion in Q4 vs. -$5.17 billion in the same period last year.
-EPS: $1.40 in Q4 vs. -$3.65 in the same period last year.
-Excluding items, General Motors Company reported adjusted earnings of $2.05 billion or $1.43 per share for the period.
-Analysts projected $1.22 per share
-Revenue: $38.4 billion in Q4 vs. $37.7 billion in the same period last year.