TLDR:
- GM reports Q3 revenue of $48.78B, beating estimates of $44.69B
- Adjusted EPS of $2.96 vs expected $2.44
- Third guidance raise in 2024, now forecasting full-year adjusted EBIT $14-15B
- North American operations led growth with $4B in adjusted earnings
- EV sales up 60% YoY with 32,195 units delivered
General Motors reported stronger-than-expected third-quarter results Tuesday, marking its ninth consecutive quarter of beating Wall Street’s earnings expectations. The automotive giant posted revenue of $48.78 billion, a 10.5% increase from the previous year and significantly above analyst estimates of $44.69 billion.
The company’s adjusted earnings per share reached $2.96, surpassing the expected $2.44, while EBIT-adjusted profit grew to $4.115 billion, representing a 15.5% increase year-over-year. The EBIT-adjusted margin improved to 8.4% from 8.1% in the same period last year.
North American operations continued to be the primary driver of GM’s success, generating nearly $4 billion in adjusted earnings before interest and taxes, up 12.9% from the previous year. This represented a 9.7% adjusted profit margin in the region. The strong performance in North America helped offset challenges in other markets, particularly in China.
The company’s robust quarter led to its third guidance raise of 2024. GM now expects full-year adjusted EBIT between $14 billion and $15 billion, up from its previous forecast of $13 billion to $15 billion. The automaker also increased its adjusted automotive free cash flow guidance to $12.5-13.5 billion from $9.5-11.5 billion. Additionally, GM tightened its net income forecast for common stockholders to between $10.4 billion and $11.1 billion, or $9.14 to $9.63 per share.

Vehicle pricing remained strong throughout the quarter, with average transaction prices maintaining levels above $49,000. GM CFO Paul Jacobson noted that consumer demand has remained resilient.
“The consumer has held up remarkably well for us,” Jacobson said during a media briefing. “Nothing we see has changed from where we’ve been for the last several quarters.”
While overall deliveries decreased 2% to 659,601 vehicles compared to last year, retail sales grew by 3%. The company maintained its position as the largest vehicle seller in the US during the quarter. GM’s electric vehicle segment showed particular promise, with sales increasing 60% year-over-year to 32,195 units, despite a decrease in Bolt EV sales.
However, GM faced several challenges during the quarter. The company reported a $137 million loss in China, where restructuring efforts are ongoing. International markets outside North America and China experienced an 88.2% drop in adjusted earnings to $42 million. The company’s Cruise autonomous vehicle unit posted a loss of $383 million in the third quarter, bringing its total losses through September to approximately $1.3 billion.
Cost pressures also emerged, with labor expenses increasing by $200 million and warranty costs rising $700 million compared to the previous year. Despite these headwinds, strong pricing and operational efficiency helped maintain profitability.
Looking ahead, GM CFO Paul Jacobson warned that fourth-quarter earnings will be lower due to several factors, including timing of truck production, seasonality, lower wholesale volumes, and changes in vehicle mix, particularly related to increased electric vehicle sales.
However, the company pulled ahead some truck production from the fourth quarter, which provided a $400 million boost to third-quarter adjusted earnings.
GM’s share count has decreased by 19% through buybacks, contributing to its strong per-share performance. The stock responded positively to the earnings report, rising more than 7% in morning trading Tuesday, bringing the year-to-date gain to approximately 36%.
The company’s strong performance in North America, coupled with growing EV sales and maintained pricing power, suggests GM’s core business remains robust despite various market challenges and ongoing industry transformation.
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