GM beats on earnings -- stock moves higher

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  • General Motors reported fourth-quarter and full-year 2017 earnings on Tuesday.
  • The carmaker reported earnings of $US1.65 per share for the quarter, beating expectations.

General Motors reported fourth-quarter and full-year 2017 earnings on Tuesday and posted a substantial beat of analysts’ expectations.

Adjusted earnings per share for the quarter came in at $US1.65 on $US37.7 billion of revenue.

Analysts had expected $US1.42 per share.

“Improvements in all operating segments and an intense focus on cost reductions generated a record quarter and another record year,” CFO Chuck Stevens said in a statement. “We plan to build on this momentum in 2018 and beyond as we focus on growth opportunities across many parts of our business.”

For the full year, GM posted EPS of $US6.62 on revenue of $US145.6 billion.

The company made some big moves in 2017 to ensure is financial performance.

“Sweeping change accompanied record performance at General Motors in 2017,” GM said in a statement. “To continue focusing resources on its most profitable franchises, GM sold its Opel/ Vauxhall and GM Financial European operations, and exited South and East Africa, and India.”

Again, GM enjoyed strong earnings from North America as SUVs and pickup sold robustly, leading to an 8.8% operating margin globally.

GM shares moved slightly higher in pre-market trading Tuesday, to $US40.

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