GM Shares Slide Post Q3 Results; Eyes 'High-End' Of Raised FY21 Adjusted EPS Outlook

General Motors GM reported a third-quarter FY21 sales decline of 24.5% year-on-year, to $26.78 billion, beating the analyst consensus of $26.65 billion.
Adjusted EBIT declined 44.7% to $2.9 billion, with the margin contracting 400 basis points to 10.9%.
GMNA's net revenue declined 29% to $20.6 billion. GMNA EBIT-adjusted margin declined 470 basis points to 10.3%. Total North America market share fell to 12.2% versus 15.9% last year.
Total Worldwide Market Share during the quarter dropped to 6.8% versus 8.3% last year.
Adjusted EPS of $1.52 beat the analyst consensus of $0.96.
The company held $23.94 billion in cash and equivalents as of September 30, 2021.
Adjusted automotive free cash flow was negative $4.4 billion, primarily from working capital unwind due to production disruptions and increased work-in-process inventory due to the semiconductor shortage.
GM noted that its upcoming EV launches are on track, and the GMC HUMMER EV will be delivered to customers later this year and the Cadillac LYRIQ in the 1H of 2022.
Outlook: General Motors raised the FY21 Adjusted EPS outlook to $5.70 - $6.70 (prior view $5.40 - $6.40) versus the consensus of $6.25. It currently expects to reach the high end of its guidance range.
It expects full-year EBIT-adjusted to approach the high end of the $11.5 billion - $13.5 billion range.
Price Action: GM shares are trading lower by 3.58% at $55.31 on the last check Wednesday.

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