General Motors Company (NYSE:GM) preannounced its Q2 results, calling for adjusted EBIT in the range of $2.3-2.6 billion, significantly lower than the current Street estimate of $3.2-3.3 billion.
The company mentioned impacts from chip and other key component shortages, which resulted in about 95,000 vehicles in inventory manufactured without certain components.
However, the full-year guidance was reiterated, with expected adjusted EBIT of $13-15 billion and wholesale growth of 25-30%, enabled by the company’s expectation of completing and selling most of the WIP vehicles by the end of this year.
According to the analysts at Deutsche Bank, the timing of this preannouncement is a bit surprising, just two weeks after their recent conference, where the company’s CFO sounded positive about the trajectory of supply. However, the analysts find it encouraging that the company maintained its full year guidance despite these recent supply challenges.