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‘ title=”The General Motors logo displayed before a news conference at the Hudson”s building in Detroit, Michigan, on April 15, 2024’>
Jeff Kowalsky / Bloomberg via Getty Images
Key Takeaways
- General Motors posted better-than-expected profit and sales as it kept prices steady and controlled costs.
- The biggest U.S. carmaker raised the low end of its profit guidance.
- General Motors shares traded at their highest level since January 2022.
General Motors (GM) shares surged Tuesday after the biggest U.S. carmaker posted better-than-expected results and raised its profit guidance on steady pricing and cost controls.
The company reported third-quarter adjusted earnings per share (EPS) of $2.96, with revenue increasing more than 10% to $48.76 billion. Both exceeded consensus estimates of analysts polled by Visible Alpha.
GM also increased the low ends of its full-year net income, adjusted earnings before interest and taxes (EBIT), and EPS and adjusted EPS guidance.
In a letter to shareholders, Chief Executive Officer (CEO) Mary Barra wrote that during the quarter GM showed higher profitability from EVs and its redesigned SUVs, improved performance in China, and cost discipline along with a focus on capital efficiency.
Wedbush Calls Results 'A Large Step in the Right Direction'
JPMorgan said in a note to clients that the company benefited from "stronger-than-expected industry pricing and stronger pricing for GM vehicles relative to the industry." Wedbush analyst Dan Ives added that the results were a testament to the company's goals of trying to balance production and profitability, calling it "a large step in the right direction as management continues to navigate the choppy waters."
Shares of General Motors recently rose nearly 8% to $52.72, trading at their highest level since early 2022.
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