GM shares are 3.8% ahead of the market after the automaker reports a less than expected loss, beating sales
General Motors Co. shares GM,
rose 3.8% in premarket trading Wednesday, after the automaker posted a less than expected loss for the second quarter and sales exceeded estimates. The company said it had a net loss of $ 758 million, or 56 cents per share, in the quarter, after gains of $ 2.418 billion, or $ 1.66 per share, the previous year. The company’s adjusted loss per share was 50 cents, ahead of the $ 1.77 per share consensus loss from FactSet analysts. Revenue decreased 53% to $ 16.8 billion, but was ahead of FactSet’s $ 16.2 billion consensus. “The second quarter was clearly challenging, but we achieved an almost break-even EBIT adjustment in North America, despite an 8-week loss of 13 weeks of production,” Chief Financial Officer Dhivya Suryadevara said in a statement. “These results illustrate the company’s resilience and profitability as we make the critical investments necessary for our future.” To combat the effects of the pandemic, the company has cut costs through austerity measures, ad spend, deferred benefits and layoffs. The company closed the quarter with $ 30.6 billion in liquidity in the auto industry. Shares have fallen by 28% in the past year, while the S&P 500 SPX,
decreased by 0.4%.