GM Earnings Sparkle Again
The global semiconductor shortage is weighing heavily on auto industry earnings in 2021. For example, Ford Motor Company posted strong first-quarter earnings last week but warned that it would earn minimal profits for the rest of 2021 due to the shortage.
However, General Motors (NYSE: GM) has built an impressive track record of outperformance over the past several years. It didn't disappoint with its Q1 earnings report Wednesday. Earnings smashed analysts' estimates, and the company said it expects full-year earnings near the high end of its original guidance range, despite the impact of the chip shortage.
General Motors' adjusted operating profit totaled $4.4 billion last quarter -- up by more than $3 billion from the pandemic-impacted first quarter of 2020. Revenue was roughly flat year over year at $32.5 billion, largely due to production constraints related to the semiconductor shortage. Adjusted earnings per share reached $2.25, blowing past the analyst consensus of $1.04.
Source Fool.com
