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General Motors Co. late Tuesday reported first-quarter sales below Wall Street expectations, but the stock traded higher after an initial drop as investors seemed to latch on the auto maker’s intact guidance despite ongoing supply-chain problems and rising costs.
GM
GM,
said it earned $2.9 billion, or $1.35 a share, in the quarter, compared with $3.02 billion, or $2.03 a share, in the year-ago period. Adjusted for one-time items, GM earned $2.09 a share.
Sales rose to $35.98 billion from $32.47 billion a year ago.
Analysts polled by FactSet expected GM to report adjusted earnings of $1.65 on sales of $36.9 billion.
“Our confidence is strong as we accelerate our transformation, even in the face of a challenging macro environment,” Chief Executive Mary Barra said in a letter to shareholders.
Thanks to “strong demand” for its vehicles and “our cost discipline and the progress of our growth plan, we are reaffirming our financial guidance for the calendar year,” Barra said.
GM said it expects full-year 2022 net income between $9.6 billion and $11.2 billion, and reaffirmed earnings guidance of EBIT-adjusted between $13 billion and $15 billion.
Read also: GM and Honda are setting their sights on making cheaper EVs
GM earlier this year bought Softbank Vision Fund’s stake in Cruise for $2.1 billion, amplifying its bet on the autonomous-driving unit.
GM shares have lost more than 34% in the past 12 months, contrasting with gains of around 1% for the S&P 500 index
SPX,
in the same timeframe.
