Investing.com -- General Motors Co. (NYSE: GM) reported its second-quarter earnings before the open on Tuesday, topping consensus expectations.
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GM reported second quarter results before the bell on Tuesday that topped expectations, with the Big Three stalwart continuing to grow profits, despite fewer sales.
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GM’s stock, however, is up more than 40% over the past five years even as its market cap clocks in around $75 billion today. The magic is share repurchases: GM has spent roughly $30 billion retiring 500 million shares over that span. Since 2021, GM has generated about $53 billion in free cash flow, despite Covid, inflating prices, tariffs, and ever-changing EV policies.
General Motors is seeing consumer preferences shift away from pickup trucks, full-size utility vehicles and its more gas-reliant vehicles following fuel price increases, GM’s North American chief Duncan Aldred said. Aldred cautioned that GM isn’t convinced that the shift will be permanent. It’s historically taken six months or more before high gas prices prompt buyers to consider more fuel-efficient vehicles.
GM, Ford and Toyota have said they are planning for U.S. new-car sales to stagnate or shrink this year, as prospective buyers stay on the sidelines of the new-car market.
Ford shares recently traded about 3.7% higher on the day, on track for their highest close since 2022. General Motors shares are also up about 4.5%, but Ford stock in particular has been surging this year as investors look at the company's energy division as an opportunity to capitalize on the AI boom and soaring energy demand.
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