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General Motors made a profit less than Wall Street’s second-quarter earnings expectations despite posting solid profits and raising year-on-year guidance.
GM’s second-quarter profit fell by about $1.3 billion due to warranty recovery costs, including $800 million related to the Chevrolet Bolt EV.
The electric vehicle was recalled twice in the past year due to fire hazards.
Earnings per share in the second quarter of 2021 came to $1.97, against expectations of $2.23, while the company achieved revenues of $34.17 billion, compared to expected revenues of $30.9 billion.
Today, GM raised its full-year earnings forecast to between $11.5 billion and $13.5 billion, or $5.40 to $6.40 per share, up from $10 billion to $11 billion, or $4.50 to $5.25 per share.
General Motors shares fell about 3% during pre-market trading to $56.35 per share.
Net income was $2.8 billion for the second quarter, compared to a loss of $758 million in the second quarter of 2020 due to the coronavirus pandemic, which has shut down its factories.
