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GM expected to grow profits despite slowing sales: Q2 earnings preview
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GM (GM) reported second quarter results before the bell on Tuesday that topped expectations, with the Big Three stalwart continuing to grow profits despite fewer sales.
For the full year, GM now expects:Adjusted EBIT of $14.0 billion-$16.0 billion (prior $13.5 billion-$15.5 billion)Adjusted EPS of $12.00-$14.00 (prior $11.50-$13.50)Adjusted automotive free cash flow of $9.5 billion-$11.5 billion (prior $9 billion-$11 billion)GM stock climbed over 3% in midday trade.
GM reported Q2 revenue of $48.03 vs. $46.61 billion, per Bloomberg consensus, up 1.9% from the $47.1 billion the automaker posted a year ago.
GM posted adjusted earnings per share (EPS) of $3.57 vs. $3.19 estimated and adjusted EBIT of $3.94 billion compared to $3.7 billion expected.
GM CFO Paul Jacobson said on the earnings call that tariff costs in Q2 were around $900 million, and the company expects similar exposure in Q3 and Q4.