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General Motors (GM) Q3 Earnings Beat Estimates, Increase Y/Y
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General Motors (GM - Free Report) reported adjusted diluted earnings of $2.83 per share in third-quarter 2020, comfortably surpassing the Zacks Consensus Estimate of earnings of $1.47. Higher-than-anticipated revenues from the General Motors North America segment drove this outperformance.
Moreover, the reported figure comes in significantly higher than the year-ago quarter’s earnings of $1.72 per share.
The top U.S. carmaker reported revenues of $35,480 million in the third quarter, missing the Zacks Consensus Estimate of $38,020 million. Revenues, however, marginally increased from the year-ago figure of $35,473 million. The company recorded adjusted EBIT of $5,284 million, significantly up from the $2,966 million witnessed in the prior-year quarter. The automaker’s market share in GM markets was 10.6% in the reported quarter, reflecting a fall from the year-ago period’s 10.7%.
GM North America (GMNA) generated third-quarter net revenues of $29,128 million, up from the $27,971 million recorded in the corresponding period of 2019. Also, revenues from the unit outpaced the Zacks Consensus Estimate of $29,023 million. The segment reported an operating profit of $4,366 million compared with the year-ago operating profit of $3,023 million. Results improved primarily on continued cost actions and disciplined incentives.
GM International’s (GMI) net revenues during the reported quarter were $2,735 million, down from the year-ago quarter’s $3,794 million. Moreover, revenues from the segment lagged the Zacks Consensus Estimate of $3,261 million. The unit recorded an operating profit of $10 million, against the prior year’s loss of $65 million, owing to strong pricing, improved mix and the benefits from cost-containment actions.
GM Financial generated net revenues of $3,421 million during the September-end quarter, down from the $3,659 million recorded in the year-ago period. In addition, the revenue figure lagged the Zacks Consensus Estimate of $3,604 million. The segment recorded an operating profit of $1,207 million, up from the $711 million witnessed in the prior-year quarter. This upswing resulted from the positive impact of high used vehicle prices contributing to gains on the sale of off-lease vehicles, stable credit performance and reduced interest expense.
GM Cruise witnessed net revenues of $26 million in the third quarter, up from the $25 million reported in the year-earlier period. The segment posted an operating loss of $204 million, narrower than the $251-million loss reported in the prior-year quarter.
GM Corporate delivered net revenues of $203 million in the reported quarter, up from the year-ago period’s $52 million. The segment reported an operating loss of $95 million, narrower than the $452-million loss posted in the year-ago quarter.
Financial Position
General Motors had cash and cash equivalents of $26.9 billion as of Sep 30, 2020 compared with $19.1 billion as of Dec 31, 2019. Long-term automotive debt stands at $26.5 billion compared with $12.5 billion as of Dec 31, 2019.
General Motors’ automotive liquidity was above target, coming in at $37.8 billion at the end of the July-September quarter. The company repaid $5.2 billion of its revolving credit facilities during the third quarter and an additional $3.9 billion in the month of October. It recorded adjusted automotive free cash flow (FCF) of $9.1 billion in third-quarter 2020, as against the positive FCF of $3.8 billion witnessed in the prior-year period.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank of 3 (Hold). Shares of the company have depreciated 3.7%, year to date, while the industry has witnessed a fall of 0.5%.
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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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General Motors (GM) Q3 Earnings Beat Estimates, Increase Y/Y
General Motors (GM - Free Report) reported adjusted diluted earnings of $2.83 per share in third-quarter 2020, comfortably surpassing the Zacks Consensus Estimate of earnings of $1.47. Higher-than-anticipated revenues from the General Motors North America segment drove this outperformance.
Moreover, the reported figure comes in significantly higher than the year-ago quarter’s earnings of $1.72 per share.
The top U.S. carmaker reported revenues of $35,480 million in the third quarter, missing the Zacks Consensus Estimate of $38,020 million. Revenues, however, marginally increased from the year-ago figure of $35,473 million. The company recorded adjusted EBIT of $5,284 million, significantly up from the $2,966 million witnessed in the prior-year quarter. The automaker’s market share in GM markets was 10.6% in the reported quarter, reflecting a fall from the year-ago period’s 10.7%.
General Motors Company Price and EPS Surprise
General Motors Company price-eps-surprise | General Motors Company Quote
Segmental Performance
GM North America (GMNA) generated third-quarter net revenues of $29,128 million, up from the $27,971 million recorded in the corresponding period of 2019. Also, revenues from the unit outpaced the Zacks Consensus Estimate of $29,023 million. The segment reported an operating profit of $4,366 million compared with the year-ago operating profit of $3,023 million. Results improved primarily on continued cost actions and disciplined incentives.
GM International’s (GMI) net revenues during the reported quarter were $2,735 million, down from the year-ago quarter’s $3,794 million. Moreover, revenues from the segment lagged the Zacks Consensus Estimate of $3,261 million. The unit recorded an operating profit of $10 million, against the prior year’s loss of $65 million, owing to strong pricing, improved mix and the benefits from cost-containment actions.
GM Financial generated net revenues of $3,421 million during the September-end quarter, down from the $3,659 million recorded in the year-ago period. In addition, the revenue figure lagged the Zacks Consensus Estimate of $3,604 million. The segment recorded an operating profit of $1,207 million, up from the $711 million witnessed in the prior-year quarter. This upswing resulted from the positive impact of high used vehicle prices contributing to gains on the sale of off-lease vehicles, stable credit performance and reduced interest expense.
GM Cruise witnessed net revenues of $26 million in the third quarter, up from the $25 million reported in the year-earlier period. The segment posted an operating loss of $204 million, narrower than the $251-million loss reported in the prior-year quarter.
GM Corporate delivered net revenues of $203 million in the reported quarter, up from the year-ago period’s $52 million. The segment reported an operating loss of $95 million, narrower than the $452-million loss posted in the year-ago quarter.
Financial Position
General Motors had cash and cash equivalents of $26.9 billion as of Sep 30, 2020 compared with $19.1 billion as of Dec 31, 2019. Long-term automotive debt stands at $26.5 billion compared with $12.5 billion as of Dec 31, 2019.
General Motors’ automotive liquidity was above target, coming in at $37.8 billion at the end of the July-September quarter. The company repaid $5.2 billion of its revolving credit facilities during the third quarter and an additional $3.9 billion in the month of October. It recorded adjusted automotive free cash flow (FCF) of $9.1 billion in third-quarter 2020, as against the positive FCF of $3.8 billion witnessed in the prior-year period.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank of 3 (Hold). Shares of the company have depreciated 3.7%, year to date, while the industry has witnessed a fall of 0.5%.
Some better-ranked stocks in the auto sector include Lear Corporation (LEA - Free Report) , Autoliv Inc (ALV - Free Report) and LCI Industries (LCII - Free Report) , all of which sport a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>