General Motors Company
Quarterly adjusted earnings per share of $2.96 beats the street view of $2.43.
Quarterly sales of $48.757 billion (+10.5%) beat the analyst consensus estimate of $44.585 billion.
Adjusted EBIT for the quarter improved by 15.5% to $4.115 billion, with an adjusted EBIT margin of 8.4%, up by 30 bps. Net income margin was 6.3% versus 6.9% a year ago.
General Motors exited the quarter with cash and equivalents worth $23.7 billion and had marketable debt securities of $8.5 billion. Inventories as of quarter-end totaled $17.33 billion.
Adjusted automotive free cash flow at the end of the quarter was $5.834 billion.
Equity earnings related to Ultium Cells Holdings LLC, an equally owned joint venture with LG Energy Solution, were $309 million in the quarter under review, higher than the $101 million a year ago. This entity is integral to business operations by providing battery cells for the company's electric vehicles (EVs).
According to a news report by CNBC, GM CFO Paul Jacobson stated that the average transaction price per vehicle remained over $49,000 from July to September, despite market concerns. He noted that consumer demand remains strong, with no significant changes observed in recent quarters.
Yesterday, the firm declared a fourth-quarter cash dividend of 12 cents per share, payable Dec. 19, to all common shareholders of record as of the close of trading on Dec. 6.
Outlook: The company raises 2024 adjusted EPS guidance from $9.50 - $10.50 to $10.00 - $10.50 (consensus $10.00).
The 2024 financial guidance includes anticipated capital spending of $10.5 billion - $11.5 billion, inclusive of investments in the company's battery cell manufacturing joint ventures.
The company expects adjusted automotive free cash flow in the range of $12.5 billion - $13.5 billion (prior view: $9.5 billion - $11.5 billion).
Price Action: GM shares are trading higher by 0.94% at $49.39 premarket at the last check Tuesday.
