GM’s stock drops after downbeat profit outlook, citing rising commodity costs and unfavorable FX
Shares of General Motors Co. sank 3.9% in premarket trade Wednesday, after the automaker reported second-quarter earnings that topped expectations but revenue that fell short, and provided a downbeat profit outlook. Net income rose to $2.38 billion, or $1.66 a share, from $1.66 billion, or $1.60 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.81, above the FactSet consensus of $1.78. Revenue fell 0.6% to $36.8 billion, below the FactSet consensus of $37.0 billion. GM expects 2018 adjusted EPS of $6.00, below the FactSet consensus of $6.42. “Recent and significant increases in commodity costs and unfavorable foreign exchange impact of the Argentina peso and Brazilian real have negatively affected business expectations,” the company said in a statement. The stock has lost 3.7% year to date through Tuesday, while the S&P 500 has gained 5.5.