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General Motors Q3 Profit Tops Estimates, Shares Surge

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General Motors Co. (GM) said, during the third quarter, it delivered strong earnings and free cash flow, and maintained leading U.S. full-size truck and large SUV market share. The company said its sales in the U.S. and China are recovering faster than many people expected, and GM is benefiting from robust customer demand for new vehicles and services, especially the company's full-size pickups and SUVs.

Third quarter adjusted earnings per share was $2.83 compared to 1.72, a year ago. The company noted that EPS adjusted includes a $0.05 gain from Groupe PSA revaluations. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $1.38, for the quarter. Analysts' estimates typically exclude special items. EBIT adjusted was $5.3 billion, up 78 percent from previous year. EBIT adjusted was higher year-on-year primarily due to the nonrecurrence of the 2019 UAW strike, launch of all new full-size SUVs, cost actions, and strong used car prices.

Third quarter net income to stockholders increased to $4.05 billion from $2.35 billion, a year ago. Net income to common stockholders was $4.01 billion compared to $2.31 billion. Earnings per share was $2.78 compared to $1.60.

Third quarter net revenue was $35.48 billion, flat with prior year. Analysts expected revenue of $35.51 billion, for the quarter. GM's sales in China rose 12 percent year-over-year as the market continued its recovery.

General Motors said its automotive liquidity was above target, ending the quarter at $37.8 billion. GM repaid $5.2 billion of its revolving credit facilities during the third quarter, and an additional $3.9 billion in October. The company expects to repay the balance by year-end.

Shares of General Motors were up nearly 6% in pre-market trade on Thursday.

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