GM Delivers Another Massive Earnings Beat
After rivals like Ford Motor and Fiat Chrysler reported strong third-quarter results late last month, it was clear that General Motors (NYSE: GM) was poised to report impressive results for the quarter. However, investors couldn't have predicted just how strong the General's Q3 results would be. GM's blowout quarter is yet another sign that the top U.S. automaker has a bright future.
Back in late July, GM reported an adjusted operating loss of $536 million for the second quarter, as production stoppages caused by the COVID-19 pandemic reduced revenue. These stoppages also created severe working capital headwinds, causing General Motors to burn $9 billion of cash during the period.
Management and industry analysts anticipated a solid recovery in the third quarter. However, demand returned faster than expected, boosting sales and limiting the need for incentives. That paved the way for record-setting performance in many respects.
Source Fool.com
