General Motors (GM) has reported impressive third-quarter 2024 earnings, surpassing Wall Street’s expectations and leading the company to raise its full-year guidance. This marks the third time this year that GM has updated its guidance after outperforming market forecasts.
Q3 Performance Highlights
- Earnings per Share (EPS): $2.96 adjusted, compared to the expected $2.43.
- Revenue: $48.76 billion, exceeding the anticipated $44.59 billion.
The automaker’s North American operations were a significant driver of this success, contributing nearly $4 billion in adjusted earnings before interest and taxes, up 12.9% from the previous year. This strong performance enabled GM to adjust its full-year expectations:
- Adjusted EBIT: Now forecasted between $14 billion and $15 billion, or $10 to $10.50 per share, up from previous estimates.
- Automotive Free Cash Flow: Revised to $12.5 billion to $13.5 billion, from an earlier $9.5 billion to $11.5 billion.
Challenges and Strategic Moves
Despite its achievements, GM faces challenges such as losses in China and increased labor and warranty costs. The company reported a $137 million loss in China, where it is attempting to restructure operations.
Additionally, GM’s Cruise autonomous vehicle unit has lost approximately $1.3 billion through September, including $383 million in the third quarter alone.
Future Outlook
GM CFO Paul Jacobson cautioned that fourth-quarter earnings might be lower due to factors like truck production timing and increased electric vehicle sales. However, GM remains optimistic about its overall performance and plans to share its 2025 guidance in January.
The company’s stock has risen about 36% this year, buoyed by strategic buybacks reducing outstanding shares by 19% year-over-year.
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