CEO Mary Barra said GM is holding to its full-year profit guidance “despite a challenging environment because demand continues to be strong and we are actively managing the headwinds we face.”
General Motors (GM) – Get General Motors Company Report posted stronger-than-expected third quarter earnings Tuesday, while repeating its full-year profit outlook, as higher car prices helped fuel record sales for the biggest U.S. automaker.
General Motors said adjusted earnings for the three months ending in September came in at $2.25 per share, up 48.5% from the same period last year and well ahead of the Street consensus of $1.88 per share. Group revenues were pegged at $41.9 billion, GM said, a 56.4% increase from last year that came in just shy of analysts’ consensus of $42.2 billion tally.
GM sold just under 555,600 cars over the three months ending in September, a 24% from last year and a tally that reclaimed the nine-month U.S. lead over Toyota (TM) – Get Toyota Motor Corporation Report – which bested both Ford (F) – Get Ford Motor Company Report and GM in total 2021 sales for the first time since 1931.
GM repeated its view that adjusted 2022 earnings will come in between $6.50 and $7.50 per share, or $13 billion to $15 billion, with adjusted automotive free-cash flow from operations of between $7 billion and $9 billion.
“We’re delivering on our commitments and affirming our full-year guidance despite a challenging environment because demand continues to be strong for GM products and we are actively managing the headwinds we face,” CEO Mary Barra said in her quarterly letter to investors. “For growth beyond 2025, we continue to secure our future with strategic supply agreements and direct investments in natural resource recovery, processing and recycling.”
GM shares were marked 4.26% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $37.24 each.
Late Monday, GM, which brought back it quarterly dividend over the summer — following a two-year suspension linked to the Covid pandemic — declared another payout of 9 cents per share last night, payable on December 15 to shareholders of record on December 2.