By laksh5382 
Brand new GMC trucks are on display at the sales floor at Hanley’s Hilltop GMC in Richmond, California on July 02, 2024.
Justin Sullivan | getty images
Detroit – General Motors That easily outperformed Wall Street’s third-quarter earnings expectations, helping the Detroit automaker raise its key guidance target for 2024.
How the company performed in the third quarter compared to average estimates compiled by LSEG:
- earnings per share: $2.96 adjusted vs. $2.43 expected
- Income: $48.76 billion vs. $44.59 billion expected
it marks the third time GM updated its guidance this year after beating Wall Street’s top and bottom-line expectations, led by the automaker’s North American operations.
GM now expects full-year adjusted earnings before interest and taxes to be between $14 billion and $15 billion, or $10 and $10.50 a share, up from $13 billion and $15 billion, or $9.50 and $10.50. It raised its adjusted automotive free cash flow forecast to between $12.5 billion and $13.5 billion from $9.5 billion and $11.5 billion.
The automaker projected its net income attributable to common stockholders, which does not include some dividend payments, ranged between $10.4 billion and $11.1 billion, or $9.14 and $9.63 per share. This compares with its previous guidance of $10 billion to $11.4 billion, or $8.93 and $9.93.
GM’s third-quarter results were helped by strong pricing, offset losses in China and a $200 million increase in labor and $700 million in warranty costs year over year.
GM CFO Paul Jacobson said the company’s average transaction price per vehicle, which Wall Street is monitoring for signs of weakening, stood at more than $49,000 from July to September.
“The consumer has performed remarkably well for us,” he said during a media briefing. “We haven’t seen much change from where we were for the last several quarters.”
GM, Ford and Stellantis Stock in 2024.
GM said revenue during the third quarter was up 10.5% from about $44 billion a year earlier. Its net income rose slightly to $3 billion during the quarter.
Jacobson said the company’s improved third-quarter performance was helped by the automaker moving forward some truck production from the fourth quarter, which represented a $400 million increase in adjusted earnings.
The company’s North American operations represented a disproportionate amount of its earnings. These included adjusted earnings before interest and taxes of nearly $4 billion, up 12.9% from a year earlier. The results show a 9.7% adjusted profit margin.
The North American results were compared with a $137 million loss in China, where GM Efforts are being made to reorganize operationsAnd adjusted revenue in its other international markets declined 88.2% from a year earlier to $42 million.
GM’s financing arm reported a 7.3% decline in adjusted earnings to $687 million during the third quarter.
Quarterly reports come in just two weeks After GM Investor Day In which the company indicated that the strength in its earnings is expected to continue next year also. GM is expected to share its full 2025 guidance in January.
Among the topics of interest to investors that were missed earlier this month are details about GM’s funding plans for its troubled Cruise autonomous vehicle unit. china restructuring And any updates regarding its near-term electric vehicle sales and plans.
GM shares are up about 36% this year, closing at $48.93 on Monday. The stock has been boosted by billions of dollars in buybacks by GM, which has caused shares outstanding to decline 19% year-to-date.
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