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General Motors Says Chip Shortage Likely to Stall 2021 Earnings

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General Motors (GM) - Get Report posted stronger-than-expected fourth-quarter earnings but warned that a global semiconductor chip shortage could cut into its 2021 numbers by as much as $2 billion.

GM said Wednesday that adjusted earnings for the final three months of the year were $2.8 billion, or $1.93 a share, vs. $72 million, or 5 cents a share, in the same period a year ago. Analysts polled by FactSet had been expecting earnings of $1.60 a share.

Sales rose 23% to $37.5 billion from $30.8 billion in the same period last year, also beating the $36.2 billion average forecast of analysts polled by FactSet. Fourth-quarter EBIT-adjusted margin came in at 9.9%, the company said.

At the same time, the Detroit-based automaker warned that future earnings may be impacted by a global semiconductor chip shortage that it said could cut its earnings by $1.5 billion and $2 billion this year. 

Specifically, GM said it now expects 2021 adjusted earnings of between $4.50 and $5.25 a share, well below current analyst estimates of $6.05 a share.

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