General Motors (GM) Q3 2024 results

DETROIT – General Motors significantly beat Wall Street's third-quarter earnings expectations, prompting the Detroit automaker to raise key forecast targets for 2024.

Here's how the company performed in the third quarter compared to LSEG's average estimates:

• Earnings per share: $2.96 adjusted vs. $2.43 expected
• Revenue: $48.76 billion versus expected $44.59 billion

This is the third time this year that GM has updated its forecast after the company beat Wall Street's sales and profit expectations, led by the automaker's North American operations.

GM now forecasts full-year adjusted earnings before interest and taxes of $14 billion to $15 billion, or $10 to $10.50 per share, up from $13 billion to $15 billion, or $9.50 to $10.50 -Dollar. Additionally, auto adjusted free cash flow guidance was raised to $12.5 billion to $13.5 billion from $9.5 billion to $11.5 billion.

The automaker reduced its net income attributable to common shareholders, which excludes some dividend distributions, to $10.4 billion to $11.1 billion, or $9.14 to $9.64 per share. In comparison, the previous forecast was $10 billion to $11.4 billion and $8.93 to $9.93, respectively.

GM Chief Financial Officer Paul Jacobson warned that fourth-quarter profits will be lower, citing truck production timing, seasonality, lower wholesale volumes and vehicle mix, including sales of more electric vehicles.

Shares of GM rose more than 7% in morning trading on Tuesday.

The automaker has beaten Wall Street's EPS estimates for nine straight quarters and sales for eight straight quarters.

GM's third-quarter results were supported by continued strong pricing, offsetting losses in China and cost increases of $200 million in labor and $700 million in warranty costs year-over-year.

Jacobson said the company's average transaction price per vehicle, which Wall Street has been watching for signs of slowing, was over $49,000 from July to September.

“The consumer has held up remarkably well for us,” he said during a media briefing. “We don’t see anything that’s changed compared to what we’ve seen in recent quarters.”

GM said third-quarter sales rose 10.5% from about $44 billion a year earlier. Net income rose slightly to $3 billion in the quarter.

Jacobson noted that part of the company's outperformance in the third quarter was helped by the automaker bringing forward some truck production from the fourth quarter, which meant a $400 million increase in adjusted profit.

The company's North American operations accounted for a disproportionate share of its profits. That included adjusted earnings before interest and taxes of nearly $4 billion, up 12.9% from the previous year. The results represented an adjusted profit margin of 9.7%.

The North American results compare with a $137 million loss in China, where GM is trying to restructure operations, and an 88.2% year-over-year decline in adjusted earnings in other international markets to $42 million .

GM's financing division reported a 7.3% decline in adjusted profit to $687 million in the third quarter. The automaker's embattled Cruise autonomous vehicle division lost about $1.3 billion through September, including a $383 million loss in the third quarter.

The quarterly report comes just two weeks after a GM investor day where the company said its earnings strength is expected to continue next year. GM expects to announce its full 2025 guidance in January.

Topics of interest to investors that weren't addressed earlier this month include GM's financing plans for its embattled Cruise autonomous vehicle division, details of its restructuring in China and any updates regarding its near-term sales and electric vehicle plans.

“We believe we can turn things around,” Jacobson told CNBC's Phil LeBeau on Tuesday, referring to China. He said the automaker had scheduled several meetings with its Chinese partners regarding restructuring, including cost cutting.

Shares of GM are up about 36% this year since closing at $48.93 on Monday. The stock was boosted by multibillion-dollar buybacks from GM, which resulted in a 19% year-over-year decline in shares outstanding.

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