General Motors released its latest earnings results before opening bell this morning. The automaker posted adjusted earnings of $1.28 per share, beating the consensus estimate of $1.17 per share. GM also posted $43.9 billion in sales, representing a 10.8% year over year increase, compared to the consensus of $40.3 billion.
General Motors’ profits fall
GM’s GAAP earnings per share fell to $1.19 from $3.92 in the same quarter a year previously. Net income for the quarter came in at $1.8 billion, including a net loss from special items of $100 million and a $300 million currency headwind compared to the previous year. Net income in the fourth quarter of 2015 also included a $4 billion net gain from special items, mostly due to the reversal of a deferred tax asset valuation allowance in Europe.
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“Solid results in the fourth quarter capped another record year of earnings and beat the commitments we outlined for 2016,” GM Executive Vice President and CFO Chuck Stevens said in a statement. “We’ll stay focused on delivering results that will enable us to return capital and create more shareholder value.”
GM sets new records for full-year results
Full-year adjusted EBIT, rose 15.9% year over year, setting a new record. The adjusted EBIT margin creased 0.4 percentage points to 7.5%, while diluted earnings rose 1.5% to $6. Adjusted earnings for the full year surged 21.9% to $6.12, while sales increased 9.2% to $166.4 billion.
General Motors recorded strong gains in midsize pickups, small crossovers and large SUVs as Chevrolet led the way as the fastest growing U.S. brand last year with a 0.5% gain in retail market share in the country. The automaker sold 3.04 million vehicles in the U.S. and enjoyed a 7.1% gain in deliveries in China, reaching a new record of 3.87 million.
General Motors provides 2017 guide
GM expects full-year adjusted earnings for this year to come in between $6 and $6.50 per share, which is well ahead of the current consensus of $5.86 per share. The automaker expects to maintain or improve its adjusted EBIT and adjusted EBIT margin and record an increase in sales. It expects global volumes for new or refreshed vehicles to rise to 38% between 2017 and 2020 from 26% between 2011 and 2016.
Shares of GM rose by as much as 1.36% to $37.33 in premarket trading this morning.