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GM Q3 Earnings & Sales Beat Estimates, FY24 EPS View Raised

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General Motors (GM - Free Report) reported third-quarter 2024 adjusted earnings of $2.96 per share, which surpassed the Zacks Consensus Estimate of $2.49. The bottom line also increased from the year-ago quarter’s level of $2.28. Solid results from the GMNA segment led to the outperformance. Revenues of $48.75 billion beat the Zacks Consensus Estimate of $44.29 billion and increased from $44.13 billion recorded in the year-ago period.

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The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $4.11 billion, higher than $3.56 billion in the prior-year quarter. The automaker’s share in the GM market was 8.1% in the reported quarter compared with 9% in the year-ago quarter.

General Motors Company Price, Consensus and EPS Surprise

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 net revenues of $41.15 billion, up from $36.1 billion recorded in the corresponding period of 2023. The figure also outpaced our model’s projection of $36.56 billion on higher-than-expected deliveries. Wholesale vehicle sales in the GMNA unit totaled 893,000 units, up from 810,000 units reported in the year-ago quarter. The figure also surpassed our estimate of 825,000 units. The segment’s adjusted EBIT totaled $3.98 billion, up from $3.52 billion recorded in the year-earlier period. The metric also exceeded our estimate of $3.81 billion.

GM International's (“GMI”) net revenues in the reported quarter amounted to $3.51 billion, down from the year-ago quarter’s $4.3 billion. The metric fell slightly short of our expectation of $3.57 billion. The segment’s wholesale vehicle sales of 140,000 units decreased from 171,000 units in the year-ago quarter and also lagged our forecast of 150,000 units. GMI reported an operating profit of $42 million, significantly declining from $357 million generated in the year-ago period. Our estimate was an operating profit of $44 million.

GM Financial generated net revenues of $4.03 billion in the quarter, up from $3.64 billion recorded in the year-ago period and missed our prediction of $4.19 billion. The segment recorded an EBIT-adjusted operating profit of $687 million, down from $741 million recorded in the year-ago period. The metric missed our prediction of $768 million.

GM Cruise recorded net revenues of $26 million in the third quarter compared with $25 million recorded in the corresponding quarter of 2023. Our model estimate was also $25 million. The segment posted an operating loss of $383 million, much narrower than a loss of $732 million reported in the prior-year quarter. The reported loss was also narrower than our estimate of a loss of $413 million.

Financial Position

General Motors had cash and cash equivalents of $23.7 billion as of Sept 30, 2024. The long-term automotive debt at the end of the quarter was $15.5 billion. Net automotive cash provided by operating activities amounted to $7.86 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $5.8 billion in the third quarter of 2024, up from $4.9 billion generated in the year-ago quarter.

GM declared its third-quarter dividend of 12 cents per share. The dividend will be paid out on Dec. 19 to shareholders of record as of Dec. 6, 2024.

2024 Guidance Raised

For full-year 2024, GM now expects adjusted EBIT in the range of $14-$15 billion, up from $13-$15 billion guided earlier. Adjusted EPS is anticipated in the range of $10-$10.5, up from $9.50-$10, guided earlier. Adjusted automotive free cash flow is expected in the band of $12.5-$13.5 billion, higher than the prior forecast of $9.5-$11.5 billion.

Zacks Rank & Key Picks

General Motors carries a Zacks Rank #3 (Hold).

Better-ranked players in the auto space include BYD Co Ltd (BYDDY - Free Report) , Tesla (TSLA - Free Report) and Lucid Group (LCID - Free Report) . While BYDDY sports a Zacks Rank #1 (Strong Buy), TSLA and LCID carry Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 22% and 20%, respectively. EPS estimates for 2024 and 2025 have improved by 8 cents and 14 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for TSLA’s 2024 and 2025 sales suggests year-over-year growth of 2% and 15%, respectively. While EPS estimates for 2024 imply a 28% year-over-year decline, estimates for 2025 suggest growth of 34.3% from the projected 2024 figure.

The Zacks Consensus Estimate for LCID’s 2024 sales and earnings suggests year-over-year growth of 29.3% and 10.3%, respectively. Estimates for loss per share for 2024 and 2025 have narrowed by 5 cents and 4 cents, respectively, in the past seven days.

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