logo-loader
viewGeneral Motors Company

General Motors beats Wall Street estimates again despite being hit by longest strike since 1970

The strike saw 34 of the firm's plants closed across the USA and disrupted operations in Canada and Mexico

Car keys
Only two weeks of the strike occurred in the quarter in question but still reportedly impacted net profit by US$1 billion

General Motors Company (NYSE:GM) beat Wall Street estimates for the 17th consecutive quarter Tuesday as the US auto giant posted third-quarter numbers.

The firm beat on earnings and revenue for the three month period despite a 40-day strike by 48,000 workers, which only ended last Friday, October 25 - the longest strike at the company since 1970.

It saw 34 plants closed across the USA and disrupted the car maker's operations in Canada and Mexico.

In the three months to end September, the firm posted adjusted earnings of US$1.72 per share, compared to the US$1.31 Wall Street analysts had expected. That was on revenue of US$35.47 billion, compared to a consensus figure of US$33.82 billion.

Only two weeks of the United Auto Workers’ (UAW) strike occurred in the quarter in question but still reportedly dented GM's net profit of US$2.35 billion in the three months by US$1 billion.

Most of the impact will strike the fourth quarter and the firm said the employee action will end up costing it $2.86 billion in net income for the whole year.

Due to this, GM cut its guidance for full-year earnings to US$4.50 per share from US$4.80 per share, compared to the between US$6.50 and US$7 per share it stated previously.

Despite this, in early New York trading, GM accelerated 5% higher to US$38.54.

Contact the author at [email protected]

Quick facts: General Motors Company

Price: 34.99 USD

NYSE:GM
Market: NYSE
Market Cap: $49.99 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Learning Technologies surges as it raises full-year guidance

Learning Technologies Group (LON:LTG) Jonathan Satchell talks Proactive London through it's remarkable delivery of organic revenue growth on a constant currency basis in both the Software & Platform and Content & Services divisions. And what a difference a year makes...2020 sees LTG...

14 hours, 2 minutes ago

2 min read