General Motors Co. (GM) said its second-quarter results were better than originally expected due to strong pricing and demand, record GM Financial results and improved near-term production from the pull forward of semiconductors from the third quarter. Based on first-half performance and expectations for the rest of the year, the company increased its full-year guidance. However, the revised earnings guidance range was still below analysts' estimate. GM noted that semiconductor shortage remains fluid and supply chain challenges continue in the second-half.
Second-quarter EBIT-adjusted net income was $4.1 billion, including warranty recall costs of $1.3 billion. This is compared to a EBIT loss-adjusted of $0.5 billion, previous year. Earnings per share adjusted was $1.97 compared to a loss of $0.50. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $1.34, for the quarter. Analysts' estimates typically exclude special items. The company said its results were higher primarily due to the non-recurrence of the 2020 production stoppage as a result of the pandemic, strong pricing on full-size pickups and full-size SUVs and high used vehicle prices, partially offset by increased warranty, material and commodity costs.
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