The Return of Big GM Earnings (GM, F)

GM said that net income rose to $2.52 billion.  That generated $1.54 EPS versus $1.20 EPS from Thomson Reuters.  The earnings a year ago were $1.33 billion, or $0.85 EPS.  GM’s move to more fuel-efficient and smaller cars seems to be helping even if it is still dependent upon the truck sales for solid profits.

The sales figure came to a gain of 19% to $39.4 billion, which is well above the Thomson Reuters figure of $36.71 billion.  This last quarter had fewer sales incentives than the first quarter.

What has to still be considered is that the U.S. Treasury is still a 32% owner of GM, so it is still “Government mOtors” after the bailout.  Rival Ford Motor Co. (NYSE: F) did not accept bailout money and does not have Uncle Sam as a shareholder.  GM is also still trading as a busted IPO despite the move today.

GM shares were up 2% earlier but the current pre-market indication with over an hour to the open is up 0.85% at $27.40 after a $27.17 close yesterday.  The post-IPO trading range is $26.13 to $39.48.

It seems that the market is going to keep an overhang on this stock until the government gets rid of that 32% stake it still holds.

JON C. OGG