GM Earnings Beat Estimates on Finance Unit’s Results

General Motors Corp.’s profit for the first quarter roared past year-ago results and Wall Street estimates, fueled by improved overseas results and record earnings at its finance arm.

The world’s largest automaker, however, hedged Tuesday on whether it can meet its earnings target for the year. Its stock price fell.

GM said it earned $1.5 billion, or $2.71 a share, in the January-March period, compared with $228 million, or 57 cents, in the first quarter last year.

Excluding a gain from the $1.1-billion sale of GM Defense and results from GM’s Hughes Electronics Corp. subsidiary, GM earned $1 billion, or $1.84 a share. That’s up from $791 million, or $1.39 cents, a year ago.

Including Hughes but excluding proceeds from the defense sale, GM earned $1.81 a share in the quarter, well above the consensus Wall Street estimate of $1.54. GM said last week that it agreed to sell its stake in Hughes to News Corp.

“The first-quarter financial results reflect solid contributions from both our automotive operations and our finance unit,” said GM Chairman John F. Smith Jr., who retires May 1.

Total revenue was $49.4 billion in the first quarter, compared with $46.2 billion a year earlier. Automotive and financing revenue, which excludes Hughes, rose 5% to $46.3 billion.

GM said it expected moderate economic growth in the United States this year, resulting in total light vehicle sales in the low- to mid-16 million range -- in line with most forecasts.

But the automaker said it was not certain it would reach its calendar-year total of $5 a share “given the uncertain economic conditions around the globe.”

GM declined to give earnings guidance for the year.

David Healy, an analyst with Burnham Securities Inc., said GM’s reluctance to give a clearer earnings forecast was probably an indication of regulatory caution rather than a significant change in market factors.

Last week, Rupert Murdoch’s News Corp. agreed to acquire control of Hughes, parent of satellite television provider DirecTV, in a $6.6-billion cash and stock deal. News Corp. agreed to buy GM’s interest in Hughes and enough shares to give Murdoch control of 34% of Hughes stock.

In trading on the New York Stock Exchange, GM shares fell 95 cents to $35.17.