General Motors Company (NYSE: GM) reported better-than-expected earnings for the fourth quarter of 2019 while revenues missed the mark. Shares gained 2.5% in premarket hours on Wednesday.
Total revenue of $30.8 billion fell 19.7% year-over-year, missing estimates of $31.04 billion.
On a GAAP basis, the company reported a net loss of $232 million, or $0.16 per share, compared to a net income of $2 billion, or $1.40 per share, in the prior-year period. Adjusted EPS fell 96% to $0.05, but beat forecasts of $0.01.
GM announced a $2.2 billion investment in its Detroit-Hamtramck plant to produce a full line-up of all-electric trucks and SUVs, including the GMC Hummer EV. The production of electric pickup trucks will begin in the fall of 2021.
During the quarter, GM lost four weeks of vehicle production due to the work stoppage, reducing wholesales by 191,000 units year-over-year. The company’s market share in the US decreased year-over-year mainly due to the US labor disruption and discontinuation of some passenger cars.
GM also saw its market share in China decline due to segment shifts, lower demand for outgoing models and the slower rate of adoption of new fuel efficient technology.
Looking into 2020, GM is expected to benefit from new vehicle launches, ongoing cost savings and lean US inventory. The company will launch the Chevrolet Tahoe and Suburban, the GMC Yukon and Yukon XL and the Cadillac Escalade this year.
For fiscal year 2020, GM expects both GAAP and adjusted EPS to come in the range of $5.75-6.25.