GM, the nation’s largest automaker, reported Wednesday a record adjusted pre-tax profit of $4.1 billion for the second quarter. But adjusted pre-tax earnings of $1.97 per share fell short of the $2.23 estimate from analysts surveyed by Refinitiv.
On the positive side, GM’s $34.2 billion in sales easily topped Wall Street’s estimates.
GM also raised its guidance for the second half of the year, saying it expects adjusted pre-tax earnings of between $11.5 billion and $13.5 billion — up from its previous outlook of between $10 billion and $11 billion. GM also raised its earnings per share forecast for the same period.
GM also said it expects higher commodity prices will cost the company between $1.5 billion and $2 billion more in the second half of the year compared to the first half.
That’s an increase of 300,000 vehicles compared to the second quarter of 2020, when the pandemic and stay-at-home orders shut factories and dealerships and greatly reduced sales. But it’s 200,000 fewer vehicles than GM sold in the same quarter of 2019 before the pandemic.