: GM tops Q2 earnings estimates and raises guidance for the second time this year

General Motors Co. posted better-than-expected second-quarter earnings on Tuesday, despite a charge relating to a recall, and raised its guidance for the second time this year. The Detroit-based car maker had net income of $2.566 billion, or $1.83 a share, for the quarter, up from $1.692 billion, or $1.14 a share, in the year-earlier period. Adjusted per-share earnings came to $1.91, ahead of the $1.86 FactSet consensus. Revenue rose to $44.746 billion from $35.759 billion a year ago, also ahead of the $42.133 billion FactSet consensus. Earnings were hit by a $792 million charge for new commercial agreements the company has made with LG Electronics and LG Energy Solution. “The charge reflects the conscious decision GM made during the Chevrolet Bolt EV and Bolt EUV recall to serve customers in ways that go beyond traditional remedies, and GM is taking new steps that will reduce its costs and improve EV margins over time,” the company said in a statement. GM raised its full-year guidance and now expects net income of $9.3 billion to $10.7 billion, up from prior guidance of $8.4 billion to $9.9 billion. The company is also planning to cut an additional $1 billion in fixed costs on top of the $2 billion already disclosed and will spend less than expected on capital projects. The stock was flat premarket but has gained 17% in the year to date, while the S&P 500 SPX has gained 18.6%.

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