General Motors shares are up 2.6% Thursday after second-quarter earnings topped analyst estimates, as sales of more profitable pickup trucks and crossovers offset weaker sales in China.
Here’s what GM reported against average analysts’ estimates compiled by Refinitiv:
Adjusted EPS: $1.64 vs. $1.44, estimated
Revenues: $36.1 billion vs. $35.98 billion, estimated
“We had a solid second quarter and expect the second half of the year to be stronger than the first half. Our confidence in our full-year outlook is based on our strong full-size truck rollout, other key launches and ongoing cost savings,” said CFO Dhivya Suryadevara.
GM reported second-quarter net income of $2.41 billion, or $1.66 per share, compared with $2.39 billion, or $1.66 per share, a year earlier. Excluding one-time items, GM earned $1.64 per share, solidly outpacing analyst estimates of $1.44 per share.
Net revenue fell 1.9% to $36.1 billion from $36.8 billion.
In North America, the company’s adjusted earnings before interest and taxes rose to $3 billion from $2.7 billion a year ago.
The company delivered 747,000 vehicles in the U.S. Crossover sales rose 17% year over year and a second-quarter record. Models like the Chevrolet Equinox and Traverse both set records while sales of every Buick crossover was up year-over-year. The GMC Acadia also had its best first half in sales ever.
In the U.S., GMC saw sales rise almost 11% to 153,000 from 138,000 a year ago.
Light-duty pickup trucks also saw their market share grow with stalwarts like the Chevy Silverado and GMC Sierra also posting double-digit gains year-over-year for the second straight quarter.
Market share in North America fell to 15.8% from 16.1% during the second quarter last year.
Vehicle sales in other parts of North America including Mexico and Canada saw sales fall 16.23%.
However, income from China dropped 60.3% over the same quarter last year, with the Detroit automaker reporting income of $235 million, down from 2018′s record income of $592 million. GM China also reported sales that were down 12%, citing economic slowdowns in the country as a factor.
“We do expect China to be down year over year,” Suryadevara said in an interview with CNBC.
GM China expects to benefit from about 20 new vehicle launches, the majority of which will go on sale later in the year and consist of sport utility vehicles.
GM reaffirmed its full-year forecast for earnings per share of $6.50 to $7.00 per share.
“This was a very go