General Motors Q3 Earnings: Revenue And EPS Beat, Raises Annual Profit Outlook On Growing Consumer Demand

Zinger Key Points

GM's Q3 revenue reached $48.757 billion, exceeding estimates, while adjusted EBIT improved by 15.5% to $4.115 billion.
GM raised its 2024 adjusted EPS guidance to $10-$10.50, anticipating strong consumer demand and increased cash flow.
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General Motors Company GM shares are trading higher on Tuesday after the company reported its third-quarter results.

Quarterly adjusted earnings per share of $2.96 beats the street view of $2.43.

Quarterly sales of $48.757 billion (+10.5%) beat the analyst consensus estimate of $44.585 billion.

Adjusted EBIT for the quarter improved by 15.5% to $4.115 billion, with an adjusted EBIT margin of 8.4%, up by 30 bps. Net income margin was 6.3% versus 6.9% a year ago.

General Motors exited the quarter with cash and equivalents worth $23.7 billion and had marketable debt securities of $8.5 billion. Inventories as of quarter-end totaled $17.33 billion.

Adjusted automotive free cash flow at the end of the quarter was $5.834 billion.

Also Read: General Motors Q3 Earnings Preview: Analyst Warns Of ‘Rising Earnings Headwinds‘

Equity earnings related to Ultium Cells Holdings LLC, an equally owned joint venture with LG Energy Solution, were $309 million in the quarter under review, higher than the $101 million a year ago. This entity is integral to business operations by providing battery cells for the company’s electric vehicles (EVs).

According to a news report by CNBC, GM CFO Paul Jacobson stated that the average transaction price per vehicle remained over $49,000 from July to September, despite market concerns. He noted that consumer demand remains strong, with no significant changes observed in recent quarters.

Yesterday, the firm declared a fourth-quarter cash dividend of 12 cents per share, payable Dec. 19, to all common shareholders of record as of the close of trading on Dec. 6.

Outlook: The company raises 2024 adjusted EPS guidance from $9.50 – $10.50 to $10.00 – $10.50 (consensus $10.00).

The 2024 financial guidance includes anticipated capital spending of $10.5 billion – $11.5 billion, inclusive of investments in the company’s battery cell manufacturing joint ventures.

The company expects adjusted automotive free cash flow in the range of $12.5 billion – $13.5 billion (prior view: $9.5 billion – $11.5 billion).

Price Action: GM shares are trading higher by 0.94% at $49.39 premarket at the last check Tuesday.

Photo via shutterstock

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