GM trounces analysts´ forecasts with quarterly results

General Motors reported a sharp rise in profits for the last three months of 2015, boosted by one-offs.

Fourth quarter net income rocketed to $6.3bn or $3.92 per share, but the lion´s share of that, $2.53 per share, was due to the positive impact of extraordinary items such as a $3.9bn net non-cash benefit linked to the release of valuation allowances for certain deferred tax assets of GM Europe.

Chairman and chief executive Mary Barra said: "it was a strong year on many fronts, capped with record sales and earnings, and a substantial return of capital to our shareholders.”

Company beats analysts´ forecasts by wide margin

In adjusted terms, excluding extraordinary items that is, fourth quarter EPS improved by 17% to $1.39, as sales remained roughly unchanged in comparison to the prior year´s mark of $39.6bn.

Analysts had penciled in quarterly net profits per share of $1.20 and revenues of $36.6bn.

Full-year net income reached $9.7bn or $5.91 per share, up by 246% from the $2.8bn seen in the year ago period, although the company´s results were flattered by several extraordinary non-cash items.

In adjusted terms, full-year earnings per share increased 65% to $5.02, as the profit margin in terms of profit before interest and tax improved from 4.2% to 7.1%.

The Detroit-based manufacturer reiterated 2016 EPS guidance for between $5.25 and $5.75.

As of 13:18GMT stock in the auto-maker was rising 0.51% to $29.80 in pre-market trading.