General Motors (GM) reported earnings this morning that beat Wall Street estimates. Earnings came in at $0.06 a share or $0.29 a share, excluding items. They came in ahead of analysts’ estimates of $0.04 a share. Revenue rose to $37.4 billion, but didn’t meet analysts’ expectation of $38.43 billion.
GM’s revenue was helped by raising vehicle prices. The average sales price of all GM vehicles rose $2,000 over the last year to $32,794. The price of GM pickups rose $5,000 over the same period.
However, the company has been plagued with problems from faulty ignition switches. There are multiple investigations into its handling of the recalls that have been linked to 13 deaths.
In the corresponding video, Yahoo Finance Senior Columnist Mike Santoli spoke with Lauren Lyster about GM’s earnings in light of the recalls. He said, “It’s a wait and see year for GM.”
Even though the company beat estimates, most of the public’s attention has been focused on the recalls and how they will affect demand for GM vehicles. While it’s too early to determine what effect the recalls will have, Santoli said, “All else being equal, better to see them stay in the black as opposed to going down into a loss position,” he said.