General Motors Co. (GM) reported third-quarter earnings that exceeded analyst expectations, resulting in a 7% stock surge in early Tuesday trading. With impressive revenue growth and rising profitability, GM has demonstrated robust financial health in a competitive industry.
GM’s Q3 results highlighted an adjusted earnings per share (EPS) reaching $2.96, beating the consensus estimate of $2.40 by $0.56.
The automaker’s revenue surged to $48.76 billion, surpassing the expected $44.74 billion, marking a 10.5% year-over-year (YoY) increase. These figures underscore GM’s solid positioning in a challenging automotive market.
The company’s EBIT-adjusted rose 15.5% YoY to $4.1 billion, reflecting a strengthened 8.4% EBIT-adjusted margin. North American operations remained a key growth engine, contributing $3.98 billion in EBIT-adjusted, up 12.9% YoY.
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Mary Barra Praises GM’s Best-Ever Vehicles, Lifts 2024 Outlook
CEO Mary Barra highlighted that GM is producing its best vehicles ever and delivering strong financial results, though she acknowledged the intense competition in the industry.
This quarter’s performance is especially important for GM because it shows the company’s increasing success in making its electric vehicles (EVs) profitable while also gaining a larger share of the market.
“GM is delivering our best vehicles ever with strong financial results,”
GM CEO, Mary Barra
As the automotive industry moves toward sustainability and electrification, GM’s investments in battery cell manufacturing and EV production show its commitment to staying ahead of industry trends.
This bodes well for the company as the regulatory environment tightens and competition increases.
In light of its strong performance, GM raised its full-year 2024 guidance. The automaker now expects EBIT-adjusted between $14 billion and $15 billion, up from the previous range of $13 billion to $15 billion.
Additionally, GM raised its adjusted EPS forecast to $10.00-$10.50, above the analyst consensus of $9.97.
This optimistic guidance suggests that investors should look forward to continued strength in GM’s North American operations, increased EV profitability, and improved performance in international markets.
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