2024-07-25 00:15:27 ET
Summary
- General Motors shares fell 6% despite beating Q2 estimates and raising key metrics for FY 2024.
- Unexpected loss in China business led to stock selloff, but overall earnings were solid.
- Strong EBIT performance, driven by ICE division, and low valuation create a high safety margin investment opportunity.
Shares of General Motors ( GM ) fell 6% on Tuesday, after crushing estimates for the second fiscal quarter, and are down another 2% on Wednesday. The auto company raised a number of key metrics for its 2024 fiscal year, including EBIT and free cash flow, as General Motors sees strong demand for its pick-up truck and SUV line-ups. Shares sold off mainly because General Motors reported an unexpected loss in its China business, which the automaker said it would restructure. All things considered, General Motors reported very solid Q2 earnings and GM's valuation reflects a high safety margin!...
Read the full article on Seeking Alpha
For further details see:
General Motors: Buy The Drop, High Safety Margin