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General Motors is slightly raising its 2021 earnings guidance on strong pricing and resilient consumer demand, despite ongoing impacts from a global shortage of semiconductor chips that has depleted vehicle inventories and shuttered plants.
The Detroit automaker’s new adjusted earnings guidance for this year is about $14 billion, up from an already raised guidance of between $11.5 billion and $13.5 billion, GM CFO Paul Jacobson said Wednesday.
The new guidance will likely please investors and Wall Street analysts who were disappointed with the company only guiding to the “high end” of its range when announcing third-quarter results in October. Shares of the automaker fell by 5.4% on Oct. 27 after the third-quarter results, followed by crosstown rival Ford Motor partially raising its guidance that same day.
GM’s initial adjusted earnings guidance for the year was between $10 billion and $11 billion, as it attempted to comprehend the impact of the ongoing semiconductor chip shortage.
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