GM share trading halted in premarket after earnings warning

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Shares of General Motors Co. GM, +1.35% dropped 1.7% in premarket trading Friday, after the automaker warned of a second-quarter earnings shortfall, as vehicle wholesale volumes were hurt by the timing of semiconductor shipments and other supply chain disruptions. The company expects net income for the quarter to June 30 to be between $1.6 billion and $1.9 billion, well below the FactSet consensus of $2.46 billion. The company affirmed its full-year outlook, however, as the supply disruptions are expected to be temporary. “[W]e had a total of approximately 95 thousand vehicles in our inventory that were manufactured without certain components as of June 30, 2022, a majority of which were built in June,” the company said in a statement. “We expect that substantially all of these vehicles will be completed and sold to dealers before the end of 2022.” GM still expects 2022 net income of $9.6 billion to $11.2 billion, which surrounds the FactSet consensus of $10.24 billion. The stock has tumbled 45.8% year to date through Thursday, while shares of rival Ford Motor Co. F, +1.71% have dropped 46.4% and the S&P 500 SPX, +1.06% has slumped 20.6%.

This article was originally published by Marketwatch.com. Read the original article here.

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