General Motors (GM) Beats Expectations with $48.8 B Revenue in Third Quarter

General Motors Co. (NYSE: GM) has reported a robust financial performance for the third quarter of 2024, showcasing significant growth in key financial metrics. The company announced a revenue of $48.8 billion, marking a 10.5% increase compared to the same period last year when the revenue was $44.1 billion. This growth can be attributed to strong sales in the North American market and a strategic focus on high-demand vehicle segments such as SUVs and trucks.

Net income attributable to stockholders for the quarter stood at $3.1 billion, slightly down from $3.06 billion in the previous year, indicating a marginal decline of 0.3%. However, the company’s EBIT-adjusted figure showed a more positive trend, rising by 15.5% to $4.1 billion from $3.6 billion in the prior year.

The automotive operating cash flow also saw a significant increase, reaching $7.9 billion, up from $6.8 billion, representing a growth of 15.7%. Adjusted automotive free cash flow rose to $5.8 billion from $4.9 billion, highlighting GM’s improved cash generation capabilities.

General Motors Exceeds Market Expectations for Third Quarter of 2024

General Motors exceeded market expectations for the third quarter of 2024, delivering results that surpassed analysts’ projections.

The company reported an diluted EPS of $2.68 and an EPS-diluted-adjusted of $2.96, both figures exceeding the anticipated EPS of $2.4 for the quarter.

Revenue expectations for the quarter were set at $44.74 billion, but GM managed to surpass this by achieving $48.8 billion. The company’s strong revenue growth was driven by robust vehicle sales in North America and a strategic focus on high-margin segments.

While GM’s net income showed a slight decline compared to the previous year, the company’s EBIT-adjusted and cash flow figures indicate a healthy financial position. The positive variance in EBIT-adjusted and cash flows suggests that GM is effectively managing its operational costs and capital expenditures, thereby enhancing its financial resilience.

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General Motors Updates Full Year 2024 Earnings Guidance

In light of its strong third-quarter performance, General Motors has updated its full-year 2024 earnings guidance, reflecting increased confidence in its financial outlook.

The company now expects net income attributable to stockholders to range between $10.4 billion and $11.1 billion, an upward revision from the previous guidance of $10.0 billion to $11.4 billion. This revision underscores GM’s optimistic outlook for the remainder of the year, driven by strong demand for its vehicles and ongoing cost management efforts.

GM has also adjusted its EBIT-adjusted guidance to a range of $14.0 billion to $15.0 billion, up from the previous range of $13.0 billion to $15.0 billion. The company anticipates continued growth in its automotive operating cash flow, now expected to be between $22.0 billion and $24.0 billion, compared to the earlier guidance of $19.2 billion to $22.2 billion.

Additionally, GM has raised its adjusted automotive free cash flow guidance to $12.5 billion to $13.5 billion, reflecting its strong cash generation capabilities.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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