GM’s stock shoots up after bit profit beat, as sales recover faster than expected

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Shares of General Motors Co. shot up 6.6% in premarket trading Thursday, after the auto maker reported a third-quarter profit that was well above expectations, as sales in the U.S. and China recovered from COVID-19-related weakness faster than expected. Net income rose to $4.05 billion, or $2.78 a share, from $2.35 billion, or $1.60 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $2.83, beating the FactSet consensus of $1.38. Revenue inched up to $35.48 billion from $35.47 billion, topping the FactSet consensus of $35.43 billion. GM said U.S. sales improved each month during the quarter. “Sales in the U.S. and China are recovering faster than many people expected, and GM is benefiting from robust customer demand for our new vehicles and services, especially for our full-size pickups and SUVs,” said Interim Chief Financial Officer John Stapleton. GM sales in China grew 12% from a year ago. The stock has slipped 3.7% year to date through Wednesday, while the S&P 500 has gained 6.6%.
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