logo
Plus   Neg
Share
Email

GM Stock Surges As Q3 Results Beat View

general-motors-103118-lt.jpg

Automaker General Motors Co. (GM) on Wednesday reported a turnaround to profit in the third quarter on higher revenues. Both revenue and adjusted earnings per share for the quarter beat analysts' estimates. The company's shares are rising almost 9 percent in pre-market activity.

Third-quarter net income attributable to GM common stockholders was $2.53 billion or $1.75 per share, compared to net loss of $2.98 billion or $2.03 per share in the year-ago period.

Adjusted earnings for the quarter were $1.87 per share, compared to $1.32 per share last year.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.25 per share. Analysts' estimates typically exclude special items.

Net sales and revenue for the quarter grew 6.4 percent to $35.79 billion from $33.62 billion in the year-ago period. Wall Street expected revenues of $34.85 billion.

GM's adjusted earnings before interest and taxes or adjusted EBIT increased 25.0 percent from last year to $3.15 billion.

In North America, GM reported adjusted EBIT of $2.83 billion, up from $2.07 billion in the year-ago period. According to GM, strong results in North America were driven by all-new full-size trucks, and crossovers.

GM China equity income and GM Financial EBT were third-quarter records, the company said.

GM sold 1.98 million vehicles globally in the quarter, down 14.7 percent from last year.

Looking ahead to fiscal 2018, GM now forecasts fiscal 2018 reported earnings of $4.82 to $5.22 per share and adjusted earnings of $5.80 to $6.20 per share. Earlier, the company forecast reported full-year earnings of about $5.14 per share and adjusted earnings of about $6.00 per share.

The Street expects earnings of $5.89 per share for the year.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT