General Motors' Profit Crushed Wall Street's Estimate Despite the Chip Shortage
General Motors (NYSE: GM) surprised Wall Street with a first-quarter net profit of $3 billion, up from just $294 million a year ago, despite a series of production disruptions amid a global semiconductor shortage.
On a per-share basis, excluding one-time items, GM earned $2.25 per share in the first quarter, crushing the $1.04 per-share average estimate from Wall Street analysts surveyed by Thomson Reuters. GM's revenue, $32.5 billion, was roughly in line with estimates -- a sign that Wall Street underestimated GM's ability to generate a strong profit margin amid the chip shortage.
On a similar note, GM also said that it now expects its full-year pre-tax profit to hit the high end of its guidance range.
Source Fool.com
