General Motors (NYSE:GM) saw its shares jump 6.6% on Monday after the automaker reported third-quarter earnings that topped Wall Street expectations and raised its full-year profit guidance, even as it continues to navigate a challenging electric vehicle market.
GM posted adjusted earnings of $2.80 per share for the third quarter, well ahead of the $2.32 expected by analysts. Revenue came in at $48.59 billion, surpassing the $45.33 billion consensus forecast, although slightly lower than the $48.76 billion reported in the same period last year — a modest 0.3% year-over-year decline.
The company raised its full-year adjusted earnings outlook to a range of $9.75–$10.50 per share, up from a prior forecast of $8.25–$10.00 and above the analyst consensus of $9.45. GM also boosted its adjusted automotive free cash flow guidance to $10.0–$11.0 billion, compared with $7.5–$10.0 billion previously.
“We’re delivering on our commitments while strategically realigning our EV capacity to meet consumer demand,” said GM Chair and CEO Mary Barra in her letter to shareholders.
Despite the upbeat earnings and revised outlook, GM’s EBIT-adjusted declined 18% year-over-year to $3.38 billion, while margins narrowed to 6.9% from 8.4% a year earlier. North American EBIT-adjusted dropped 37.1% to $2.51 billion.
The quarter’s results reflected $1.59 billion in charges tied to the company’s EV capacity realignment strategy and an additional $300 million linked to an investigation into its OnStar Smart Driver program.
Wholesale vehicle sales slipped 5.4% year-over-year to 977,000 units, but GM managed to lift its U.S. market share to 17.0%, up from 16.5% a year earlier.
GM Financial continued to be a bright spot, with earnings before taxes rising 17% to $804 million, providing an additional cushion to the company’s overall results.