General Motors (GM.US) released its Q3 2024 earnings report today ahead of the market open. Company's shares rose in premarket trading as results significantly exceeded expectations across most metrics, driven by strong U.S. demand for high-margin vehicles. The implied one day move based on historical data is 5.31% with an average surprise of 38.96% for EPS. Currently the stock is 1.82% higher to $49.85.
GM reported better-than-expected Q3 results in nearly all segments, with particularly strong performance in its core North American operations. The company successfully maintained margins through disciplined pricing and inventory management, despite industry-wide softening in U.S. vehicle sales.
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General Motors Q3 2024 results:
- Revenue: $48.8 billion vs $44.7 billion expected (+10.5% YoY)
- Adjusted EPS: $2.96 vs $2.38 expected ($2.28 YoY)
- EBIT-adjusted: $4.1 billion vs $3.3 billion expected (+15.5% YoY)
- EBIT-adjusted margin: 8.4% (+0.3 pp YoY)
- Net income: $3.056 billion vs $3.064 billion YoY
- North America EBIT-adjusted: $3.98 billion (+12.9% YoY)
- Free cash flow: $5.8 billion vs $3.0 billion expected (+19% YoY)
- China operations: -$137 million loss vs +$192 million profit YoY
Key Business Metrics:
- U.S. EV sales through September: ~70,000 units
- EV production target for 2024: ~200,000 units (on track)
- Stock buybacks: ~250 million shares over past year
- Total available liquidity: $34.3 billion
GM Financial Performance:
- Net income: $499 million
- Retail loan originations: $9.4 billion
- Operating lease originations: $4.9 billion
- Retail finance receivables: $74.4 billion
- Delinquency rate (31-60 days): 2.3%
- Net charge-offs: 1.2%
Updated 2024 Guidance:
- EBIT-adjusted: $14-15 billion (raised from $13-15 billion)
- Adjusted EPS: $10.00-10.50 (raised from $9.50-10.50)
- Adjusted automotive free cash flow: $12.5-13.5 billion (raised from previous high of $11.5 billion)
- Capital spending: $10.5-11.5 billion
CEO Mary Barra emphasized the company's strong execution while acknowledging ongoing challenges: "I'm proud that GM is delivering our best vehicles ever with strong financial results. But I want to be clear that we are not mistaking progress for winning. Competition is fierce, and the regulatory environment will keep getting tougher." The company remains focused on improving profit margins in traditional business while working to make EVs profitable on an operating profit basis "as quickly as possible."
The stock is approaching a strong resistance level in pre-market trading, a level that has triggered price corrections three times since July. This key resistance could play a crucial role in determining the next move, as previous attempts to break it have been met with selling pressure. Traders should watch closely to see if the stock can break through or if another correction is imminent.
Source: xStation
