General Motors Co’s first-quarter profit beat analyst estimates on Tuesday, as the automaker focused on sales of more expensive models with higher margins, even with production still limited by chip shortages and supply chain disruptions.
GM’s net income dipped slightly to $2.9 billion in the quarter, compared with analysts’ estimates of $2.45 billion, as higher prices were not enough to offset an increase in costs.
But Chief Executive Officer Mary Barra delivered an upbeat message to investors: “We continue to see a strong pricing opportunity because there is demand for our product.”
GM shares were flat in after-hours trade at $38.
“While the results exceeded expectations, and marked a much-needed positive data point for the stock, we believe the core investor question is whether this earnings power can be maintained amid rising inflationary pressures,” Credit Suisse analyst Dan Levy said in a research note.
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