GM Expects Strong First Half; Uber Cuts Q1 Loss On Food Delivery Growth

Be the First to Comment Read

GM Expects Strong First Half; Uber Cuts Q1 Loss On Food Delivery Growth

Follow us on Google News:
 GM Expects Strong First Half; Uber Cuts Q1 Loss On Food Delivery Growth
Image source: Alexander Kirch,Shutterstock

Summary

  • GM CEO Mary Barra said the company anticipates a strong first half with adjusted EBIT around US$5.5 billion.
  • Uber’s gross booking in food delivery jumped 166 percent year over year to US$12.5 billion.

General Motors Company (NYSE: GM)General Motors, which posted robust first-quarter earnings on Thursday, projects strong first half of the year, while significant growth in Uber Technologies, Inc.’s (NYSE: UBER) food delivery business reduced the company’s first-quarter net loss.

Shares of GM rose 4.05 percent after the results to close at US$57.58.

Meanwhile, Uber’s stock, which fell 3.76 percent to close at US$51.18, declined 4.49 percent more in the after-market trading.

General Motors

GM Chairman and CEO Mary Barra on Wednesday reaffirmed the company’s previous guidance after the carmaker reported a significant growth in first quarter earnings.

The company now projects its adjusted EBIT for 2021 to come in at the higher end of its period forecast range of US$10 billion to US$11 billion.

Barra also noted that GM will have production downtime in the second quarter but anticipates a strong first half with adjusted EBIT around US$5.5 billion.

GM targets its 2021 adjusted EPS in the range of US$4.50 to US$5.25 and diluted EPS between US$4.28 and US$5.03.

The Detroit-based automaker posted a first quarter adjusted EPS of US$2.25, against 62 cent in the year-ago quarter. Adjusted EBIT grew to US$4.42 billion from US$1.25 billion.

Net income during the quarter totaled US$3.02 billion, compared with US$294 million in the previous year quarter.

GM attributed this growth to strong price and mix performance in North America, China and GM Financial.

However, revenue in the three months period came down to US$32.47 billion from US$32.71 billion in the year-ago period.

READ MORE: General Motors-LG Energy JV to Invest US$2.3B for Second Battery Plant in US

Uber Technologies

Uber reduced its loss in the first quarter to US$108 million, or 6 cents per share, compared with the loss of US$2.94 billion, or US$1.70 per share, in the same quarter previous year. Adjusted EBITDA loss improved 41 percent year over to US$359 million.

Gross bookings grew 24 percent to US$19.5 billion, driven by a 166 percent jump in food delivery bookings to US$12.5 billion. Gross bookings in Mobility fell 38 percent to US$6.8 billion.

Revenue totaled US$3.5 billion, up 8 percent year over year. The figure excludes US$600 million accruals made for the historical claims settlement in the U.K. related to the classification of drivers. Mobility revenue fell 41 percent, while food delivery revenue jumped 230 percent.

READ MORE: Uber, Lyft Stocks Tumble As Biden Scraps Trump-Era Gig Worker Rule

Disclaimer

Featured Articles