General Motors beats by $0.17, misses on revs; reaffirms FY17 EPS guidance (35.82)
- Reports Q2 (Jun) earnings of $1.89 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus of $1.72; revenues fell 1.1% year/year to $36.98 bln vs the $37.67 bln Capital IQ Consensus, driven primarily by decreased wholesale volumes in North America partially offset by strong mix and continued growth of GM Financial.
- Global deliveries were flat Y-O-Y, driven primarily by the strategic reduction of less profitable daily rental sales in North America offset by increased volumes in GMSA due to the strength of the Chevrolet brand. Q2 market share is flat Y-O-Y, driven primarily by our strategy to reduce volumes into the daily-rental channel in GMNA offset by increased share in GMSA.
- GM delivered 725,000 total vehicles in the United States, driven by a 24-percent increase in retail crossover sales. The Q2 crossover results are the best in GM history. NA EBIT $3.5 bln from $3.7 bln; Improved mix and cost efciencies largely ofset lower volumes, price and FX, and drove strong EBIT-adjusted and an EBIT-adjusted margin of 12.2 percent. In China, GM deliveries of 852,000 vehicles set a second-quarter record, up 1.6 percent compared to Q2 2016. Strong sales of Cadillac and Baojun vehicles led the way, up 62 percent and 66 percent, respectively.
- Co reaffirms guidance for FY17, sees EPS of $6.00-6.50, excluding non-recurring items, vs. $6.08 Capital IQ Consensus, with adj. EBIT and rev greater to or equal 2016 levels.
- "Strong results in North America and China, solid improvement in South America and continued growth of GM Financial drove another strong quarter. With an aggressive launch cadence still ahead this year, we are on track to meet our fnancial commitments for 2017."