General Motors (GM) Gains After Earnings Beat, Seen as a 'Major Step in the Right Direction'

General Motors (NYSE: GM) reported better-than-expected Q3 results and full-year guidance to send its shares about 4% higher in pre-market Tuesday.

GM reported an EPS of $2.25 on revenue of $41.89 billion to beat the average analyst estimate of an EPS of $1.89 on revenue of $41.72 billion.

The company reaffirmed its full-year forecast so it still expects an EPS of $7.00 (the midpoint), higher than the consensus of $6.79. Adjusted Ebit is seen in the range of $13-15 billion, again better than the consensus of $12.3 billion. General Motors expects to increase its wholesale volumes by between 25-30%.

“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 Marry Barra’s letter to shareholders stated.

Wedbush analyst Daniel Ives said GM delivered “solid” results.

“In this brutal supply chain backdrop and with a softer consumer environment, we would characterize a strong EBIT beat and generally in-line top-line as much better than feared by the Street. Guidance for the year was reiterated and ultimately speaks to the drumroll into 2023 that will be a pivotal year for the Detroit stalwart on its EV strategic vision,” Ives said in a client note.

By Senad Karaahmetovic

You May Also Be Interested In

• Micron surges 5.5% on blockbuster Anthropic AI deal ahead of earnings
• Robinhood Markets (HOOD) PT Raised to $130 at Cantor Fitzgerald
• Definium Therapeutics Inc (DFTX) PT Raised to $60 at Oppenheimer