General Motors revenue is up. The automaker earned $1.95 Billion in the first quarter, more than double the previous year's total which came inat $953 million. The numbers far exceeded Wall Street expecatations. Still GM stock only rose modestly amid the news.
On an earnings per share basis, GM made $1.26. the company's best first-quarter profit ever.
company asserted it will post a record pre-tax profit for all of 2016.
GM shares rose above its November 2010 initial public offering price of $33 briefly in morning trading before closing at $32.66, a 1.5% gain for the day....its highest closing price since Jan. 4.
In the U.S. GM remains on pace to break last year's record of 17.5 million units sold, but many are worried the industry's cycle is near its peak.
There also is concern about the profitability of GM's investments in ride-sharing, car-sharing and autonomous vehicles will prove to be.
"The best thing we can do is continue to execute our short-term and long-term strategies, put the results on the board, continue our focus on the future with our investments in Lyft ($500 million) and Cruise Automation and our share price will reflect that over time," said Chuck Stevens, GM chief financial officer.
Total revenue also exceeded expectations, by rising 4.5% to $37.3 billion, despite selling 2.5% fewer vehicles worldwide. Most of the decline was seen in South America.
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