Out of the Gate: General Motors rises on 1Q results

NEW YORK—General Motors Corp. stock rose Wednesday after the company posted a smaller loss than Wall Street expected in the first quarter, and reported stronger sales.

The Detroit-based company lost 62 cents per share excluding one-time items, and revenue declined to $42.7 billion. According to Thomson Financial, analysts on average expected a loss of $1.60 per share on $40.78 billion in sales.

In morning trading, GM shares gained $1.35, or 6.4 percent, to $22.55.

Citi analyst Itay Michaeli said sales improved in all of GM's overseas markets, and GM North America performed better than he expected, as the company's efforts to hedge against commodity prices paid off.

The Detroit-based automaker lowered its estimate for total U.S. vehicle sales, to the high-15 million range from the low 16-million range. Michaeli said GM will reduce light truck production by 138,000.

The analyst kept a "Buy" rating on the stock, with a price target of $32 per share.

Overall, eight analysts rate GM shares at the equivalent of "Neutral," while four give a "Buy" rating and three rate shares at "Sell."