GM CEO on Q2 results: “chip shortage won’t delay the launch of EVs”

General Motors Co (NYSE: GM) reported its financial results for the second quarter on Wednesday that beat Wall Street estimates as automotive sales jumped 130% on a year over year basis. Shares of the company still tanked about 7% as the raised profit guidance for the full year still came in weaker than the FactSet consensus.

Financial performance

General Motors posted $2.79 billion of net income for Q2 that translates to $1.90 per share. In the comparable quarter of last year, it had registered $806 million of loss or 56 cents per share. Adjusted for one-time items, GM earned $1.97 a share.

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The American multinational generated $34.17 billion of total revenue that represents an annualised growth of more than 100%. According to FactSet, experts had forecast $29.92 billion of revenue and $1.82 of adjusted EPS.

Guidance for the full year

For the full year, General Motors now forecasts its adjusted per-share earnings to fall between $5.40 and $6.40. Analysts, on the other hand, are calling for a higher $7.07 of adjusted EPS this year. In its previous guidance, GM had expected up to $5.25 of adjusted earnings per share in fiscal 2021.

The earnings report comes almost a month after Wedbush’s Ives said he saw a 50% upside in GM stock.

CEO’s remarks on CNBC’s “Squawk Box”

General Motors is scheduled to launch the Hummer EV and the Hummer EV SUV later this year, followed by Cadillac Lyriq and Celestiq in 2022. Commenting on whether the ongoing COVID-related global chip shortage will impact the rollouts, CEO Mary Barra said on CNBC’s “Squawk Box”:

“There is uncertainty related to the delta variant, but considering the strength of our underlying business, our product portfolio, the work we’re doing from the electrification perspective, and the upcoming launch of new electric vehicles, I think it’s going to be a good second half. Right now, we don’t see anything that could delay the launch of the EVs. Production for all of these vehicles is right on track.”