NEW YORK (TheStreet) -- Shares of General Motors Co. (GM) are down -2.38% to $36.52 after the automaker reported an 80% decline in its second-quarter net profit this morning, with earnings hit by $1.5 billion in charges related to vehicle recalls and money set aside to fund a compensation plan for victims of car accidents linked to defective ignition-switches, the Wall Street Journal reports
Earnings during the period equaled $278 million, which reflect preferred dividends, compared with $1.41 billion a year earlier. Excluding certain one-time costs, GM earned 58 cents a share, matching the 58 cents a share analysts expected, according to FactSet.
TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."