General Motors Company stock took a beating Wednesday and Thursday after the automaker lowered guidance for the rest of the year as it reported second quarter earnings.
GM shares ended Wednesday off 4.6 percent, representing the biggest one-day percentage plunge since November 2011. The stock lost another 2.4 percent Thursday.
Prior to the the earnings report, GM shares closed on Tuesday (July 24th) at $39.48, and closed on Thursday (July 26th) at $36.75, losing 7.4 percent in the 48 hour-long period. After-hours trading on Thursday saw shares gain less than a percent to $36.78.
The lowest that GM shares were valued in the past 12 months was $34.76, in August 2017.
General Motors revealed that costlier raw materials and unfavorable exchange rates in Brazil and Argentina will negatively impact its earnings in 2018, costing the company $1 billion in profit. The automaker has trimmed its profit outlook for the year, adjusting earnings to about $6 per share for 2018. Earlier this year, it forecast earnings in line with last year’s figure, which was $6.62.
During Q2 2018, General Motors’ pretax profit fell 13.3 percent to $3.2 billion. The automaker’s North American operations – by far its biggest and most profitable, was hit more than any of its other regional divisions.