General Motors Co. (NYSE: GM) raised its 2016 guidance as the company reported quarterly profit and revenue that easily topped analysts’ estimate, driven by the strong demand for its truck and SUV.
The auto maker said net income rose to $2.9 billion in the second quarter, compared with $1.1 billion in the same period a year earlier. Adjusted earnings were $1.86 per share, up from $1.29 per share a year earlier. Analysts in Wall Street had projected earnings of $1.49 a share.
Revenue rose 11 percent to $42.4 billion, up from $38.2 billion in the same period a year ago. The result also beat analysts’ estimates of $39 billion.
Geographically, the company kept its momentum in North American and earned $3.6 billion before taxes in its home market. Operating margins in North American rose to records high 12.1%. In Europe, the company posted earnings of $137 million, the first time it made a profit in that market since 2011. The performance in China is steady, the company earn about $500 million in the world’s largest auto market.
“This was an outstanding quarter for GM,” said Chief Executive Officer Mary Barra in the statement. “Our results were generated by strong retail sales in the U.S., record sales in China and a continued emphasis on improving our performance worldwide.”
Under Ms. Barra’s strategy, the company had been focused on producing more profitable vehicles like trucks, SUV and crossovers. This is the best quarter since GM filed for bankruptcy protection in 2009.
Based on the strong performance, the company raised its annual earnings guidance to a range of $5.50 to $6 a share.