GM surpasses Wall Street's third-quarter expectations and raises 2024 earnings guidance.

• Wall Street's third-quarter earnings expectations were easily surpassed by GM, resulting in the automaker raising key guidance targets for 2024.
• GM now anticipates full-year adjusted EBIT of between $14 billion and $15 billion, or $10 and $10.50 per share, an increase from between $13 billion and $15 billion, or $9.50 and $10.50.
• GM executives will host an earnings conference call at 8:30 a.m. ET.

The Detroit automaker outperformed Wall Street's third-quarter earnings expectations, enabling it to raise key guidance targets for 2024.

In contrast to average estimates compiled by LSEG, here's how the company fared in the third quarter.

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

For the third time this year, GM has revised its guidance after surpassing Wall Street's expectations for both top and bottom lines, primarily due to the strong performance of its North American operations.

GM now anticipates full-year adjusted earnings before interest and taxes of between $14 billion and $15 billion, or $10 and $10.50 per share, an increase from between $13 billion and $15 billion, or $9.50 and $10.50. Additionally, the company raised its adjusted automotive free cash flow forecast to between $12.5 billion and $13.5 billion, up from $9.5 billion and $11.5 billion.

The automaker's net income attributable to common stockholders, excluding some dividend payouts, is now projected to be between $10.4 billion and $11.1 billion, or $9.14 and $9.63 per share. This is lower than its previous guidance of $10 billion to $11.4 billion, or $8.93 and $9.93.

Despite year-over-year cost increases of $200 million in labor and $700 million in warranty costs, GM's third-quarter results were boosted by strong pricing, which helped offset losses in China.

The average transaction price per vehicle for the company remained above $49,000 during the months of July, August, and September, as observed by Wall Street.

"During a media briefing, he stated that the consumer has remained resilient for us, with no significant changes observed since the previous quarters."

During the third quarter, GM's revenue increased by 10.5% compared to the previous year, which was approximately $44 billion. Additionally, the company's net income during the quarter slightly rose to $3 billion.

The automaker's decision to pull ahead some truck production from the fourth quarter contributed to the company's third-quarter outperformance, resulting in a $400 million boost in adjusted earnings.

Nearly $4 billion in adjusted earnings before interest and taxes from the company's North American operations accounted for a significant portion of its earnings, up 12.9% from the previous year. This translated into a 9.7% adjusted profit margin.

In contrast to a $137 million loss in China and an 88.2% decline in adjusted earnings in its other international markets, GM's North American results showed a positive outcome.

During the third quarter, the adjusted earnings of GM's financing arm decreased by 7.3% to $687 million.

The investor day revealed GM's earnings strength, and the quarterly report will be released two weeks later. The company anticipates continuing this trend into next year and will provide its full 2025 guidance in January.

The topics of interest for investors that were not addressed earlier this month include GM's funding plans for its embattled Cruise autonomous vehicle unit, details on its China restructuring, and any updates regarding its near-term electric vehicle sales and plans.

As of Monday's close, GM's shares have increased by approximately 36% this year, reaching a price of $48.93. This growth can be attributed to the company's $10 billion in buybacks, which have resulted in a 19% reduction in outstanding shares year-over-year.

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