General Motors (GM) and EMC (EMC) released their latest earnings reports before opening bell this morning. GM posted adjusted earnings of $1.50 per share, a 55% year over year increase that smashed the FactSet estimate of $1.18 per share. The automaker’s revenue came in at $38.8 billion, compared to the consensus estimate of $37 billion. Last year’s revenue was $39.3 billion, and management attributed the decline to negative currency impacts. Excluding foreign exchange, net revenue climbed $2.3 billion year over year.
EMC reported earnings of 43 cents per share and revenue of $6.08 billion for the third quarter. Analysts had been looking for earnings of 44 cents per share and $6.17 billion in revenue.
GM shares surge after report
General Motors’ reported earnings were 84 cents per share, compared to last year’s 81 cents. Management said net losses from special items offset improvements in operating performance during the quarter. Adjusted EBIT was $3.1 billion, while EBIT-adjusted margin was 8%, with both metrics setting new records. Last year adjusted EBIT was $2.3 billion and the EBIT-adjusted margin was 5.8% for the third quarter.
GM said its North America division set a new record for adjusted EBIT at $3.3 billion and an EBIT-adjusted margin of 11.8%. In Europe, the automaker’s adjusted EBIT was -$0.2 billion, an improvement from last year’s -$0.4 billion. GM’s International Operations recorded adjusted EBIT of $0.3 billion, which was about flat with last year, while the South America division saw adjusted EBIT of -$0.2 billion, a decline from last year’s breakeven result
GM Financial saw $0.2 billion in earnings before tax, which was about flat with last year, and $1.7 billion in net revenue, setting a new record.
As of this writing, shares of General Motors were up 3.79% at $34.76 per share in pre-market trades.
EMC falls after earnings
EMC’s GAAP earnings were 25 cents per share. Revenue rose 1% year over year on a reported basis and 5% on a constant currency basis.
