GM reported second quarter profit that missed analyst estimates, and said it will spend at least $400 million to pay victims of the 2.59 million compact cars with a potentially faulty ignition switch linked to at least 13 deaths.
Profit, excluding one-time items, was 58 cents a share, versus an average estimate of 59 cents from 14 analysts, according to Bloomberg data.
The automaker reported earning 84 cents on that basis a year earlier, Bloomberg noted.
While GM took a one-time charge of $400 million for the victim compensation program, the automaker said it may jump to $600 million.
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."