=General Motors (GM) reported earnings on Wed 25 July 2018 (b/o)

General Motors beats by $0.01, reports revs in-line; lowers FY18 guidance on higher commodity costs and FX 

• Reports Q2 (Jun) earnings of $1.81 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.80; revenues fell 0.5% year/year to $36.8 bln vs the $36.62 bln Capital IQ Consensus. GM North America EBIT-adjusted of $2.7 bln and margin of 9.4 percent GM International EBIT-adjusted of $0.1 bln, includes record equity income in China of $0.6 bln, partially offset by unfavorable foreign exchange impact in South America GM Cruise EBIT-adjusted of $(0.2) bln, on plan and reflecting continued spending on autonomous as the company moves to commercialization GM Financial EBT-adjusted of $0.5 bln, another record, as earning assets grew 12 percent to $90.4 bln, supporting expected long-term earnings growth.
• Co issues downside guidance for FY18, sees EPS of ~$6 vs. $6.41 Capital IQ Consensus Estimate; OCF $11.5 bln, adj. auto FCF $4 bln. Recent and significant increases in commodity costs and unfavorable foreign exchange impact of the Argentine peso and Brazilian real have negatively affected business expectations. The company expects these headwinds to continue through 2018.