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General Motors (GM) Q3 Earnings Beat Estimates, Sales Rise Y/Y
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General Motors (GM - Free Report) reported third-quarter 2022 adjusted earnings of $2.25 per share, surpassing the Zacks Consensus Estimate of $1.89. Higher-than-expected revenues and profit from the North America segment, and higher-than-expected profit from the International segment led to the upswing. The bottom line surged 48% from the year-ago quarter’s earnings of $1.52 per share.
Revenues of $41,889 million beat the Zacks Consensus Estimate of $41,833.3 million. The top line soared 56.4% from the year-ago figure of $26,779 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $4,287 million, significantly higher than $2,922 million in the prior-year quarter.
The automaker’s share in the GM market was 9.4% in the reported quarter, up from the year-ago quarter’s 8.4%.
General Motors Company Price, Consensus and EPS Surprise
GM North America (GMNA) generated third-quarter net revenues of $34,691 million, up from $20,554 million recorded in the corresponding period of 2021. Also, revenues from the unit outpaced the Zacks Consensus Estimate of $34,024 million. The region’s wholesale vehicle sales of 784,000 units increased from 423,000 units reported in the year-ago quarter. The segment’s operating profit came in at $3,894 million, increasing from $2,125 million witnessed in the year-earlier period. The segmental profit also beat the consensus mark of $3,751 million.
GM International’s (GMI) net revenues in the reported quarter came in at $3,980 million, up from the year-ago quarter’s $2,843 million. The metric, however, fell short of the consensus mark of $5,237 million. The segment’s wholesale vehicle sales of 182,000 units increased from 113,000 units in the year-ago quarter. The unit reported an operating profit of $334 million, rising from the year-ago profit of $229 million. The metric also topped the consensus mark of $177 million.
GM Financial generated net revenues of $3,187 million in the quarter, down from $3,354 million recorded in the year-ago period and missed the consensus mark of $3,304 million. Also, the segment recorded an EBIT-adjusted operating profit of $911 million, down from $1,093 million and missed the consensus mark of $968 million.
GM Cruise recorded net revenues of $25 million in the third quarter, down from $26 million and missed the consensus mark of $37.84 million. The segment posted an operating loss of $497 million, wider than the $286 million loss reported in the prior-year quarter. The reported loss also came in wider than the consensus mark of a loss of $432 million.
Financial Position
General Motors had cash and cash equivalents of $20,745 million as of Sep 30, 2022, compared with $20,067 million as of Dec 31, 2021. The long-term automotive debt at the end of the quarter was $18,333 million compared with $16,355 million as of Dec 31, 2021.
General Motors’ automotive cash provided by operating activities amounted to $6,502 million at the end of the reported quarter against $2,602 million cash used in operating activities in the year-ago period. The company recorded an adjusted automotive free cash flow of $4,593 million in third-quarter 2022 against a negative cash flow of $4,385 million generated in the third quarter of 2021.
2022 Guidance
For 2022, General Motors’ full-year net income projection remains same in the range of $9.6-$11.2 billion. The adjusted EBIT forecast remains unchanged in the range of $13.0 billion to $15.0 billion. The adjusted EPS estimate also remained unchanged in the band of $6.5-$7.5. Adjusted automotive free cash flow remains between $7 billion and $9 billion.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 0.4% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Dorman has an expected earnings growth rate of 10.1% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
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General Motors (GM) Q3 Earnings Beat Estimates, Sales Rise Y/Y
General Motors (GM - Free Report) reported third-quarter 2022 adjusted earnings of $2.25 per share, surpassing the Zacks Consensus Estimate of $1.89. Higher-than-expected revenues and profit from the North America segment, and higher-than-expected profit from the International segment led to the upswing. The bottom line surged 48% from the year-ago quarter’s earnings of $1.52 per share.
Revenues of $41,889 million beat the Zacks Consensus Estimate of $41,833.3 million. The top line soared 56.4% from the year-ago figure of $26,779 million. The company recorded adjusted earnings before interest and taxes (EBIT) of $4,287 million, significantly higher than $2,922 million in the prior-year quarter.
The automaker’s share in the GM market was 9.4% in the reported quarter, up from the year-ago quarter’s 8.4%.
General Motors Company Price, Consensus and EPS Surprise
General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote
Segmental Performance
GM North America (GMNA) generated third-quarter net revenues of $34,691 million, up from $20,554 million recorded in the corresponding period of 2021. Also, revenues from the unit outpaced the Zacks Consensus Estimate of $34,024 million. The region’s wholesale vehicle sales of 784,000 units increased from 423,000 units reported in the year-ago quarter. The segment’s operating profit came in at $3,894 million, increasing from $2,125 million witnessed in the year-earlier period. The segmental profit also beat the consensus mark of $3,751 million.
GM International’s (GMI) net revenues in the reported quarter came in at $3,980 million, up from the year-ago quarter’s $2,843 million. The metric, however, fell short of the consensus mark of $5,237 million. The segment’s wholesale vehicle sales of 182,000 units increased from 113,000 units in the year-ago quarter. The unit reported an operating profit of $334 million, rising from the year-ago profit of $229 million. The metric also topped the consensus mark of $177 million.
GM Financial generated net revenues of $3,187 million in the quarter, down from $3,354 million recorded in the year-ago period and missed the consensus mark of $3,304 million. Also, the segment recorded an EBIT-adjusted operating profit of $911 million, down from $1,093 million and missed the consensus mark of $968 million.
GM Cruise recorded net revenues of $25 million in the third quarter, down from $26 million and missed the consensus mark of $37.84 million. The segment posted an operating loss of $497 million, wider than the $286 million loss reported in the prior-year quarter. The reported loss also came in wider than the consensus mark of a loss of $432 million.
Financial Position
General Motors had cash and cash equivalents of $20,745 million as of Sep 30, 2022, compared with $20,067 million as of Dec 31, 2021. The long-term automotive debt at the end of the quarter was $18,333 million compared with $16,355 million as of Dec 31, 2021.
General Motors’ automotive cash provided by operating activities amounted to $6,502 million at the end of the reported quarter against $2,602 million cash used in operating activities in the year-ago period. The company recorded an adjusted automotive free cash flow of $4,593 million in third-quarter 2022 against a negative cash flow of $4,385 million generated in the third quarter of 2021.
2022 Guidance
For 2022, General Motors’ full-year net income projection remains same in the range of $9.6-$11.2 billion. The adjusted EBIT forecast remains unchanged in the range of $13.0 billion to $15.0 billion. The adjusted EPS estimate also remained unchanged in the band of $6.5-$7.5. Adjusted automotive free cash flow remains between $7 billion and $9 billion.
Zacks Rank & Key Picks
GM currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Dorman Products (DORM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 0.4% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Dorman has an expected earnings growth rate of 10.1% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.