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UAV Local 5960 member Kimberly Furr inspects a Chevrolet Bolt EV during vehicle production Thursday, May 6, 2021, at the General Motors Orion plant in Orion, Michigan.
Steve Fecht for Chevrolet
DETROIT – General Motors easily beat Wall Street earnings expectations during the third quarter, while slightly missing on revenue.
Here’s how GM fared compared to analyst estimates compiled by Refinitiv:
- Adjusted earnings per share: $2.25 vs. $1.88
- income: 41.89 billion dollars vs. 42.22 billion dollars
A big hit and a little miss at the top has been the trend during the coronavirus pandemic for the automaker, as tight vehicle inventories have led to lower sales but higher profits on in-demand SUVs and pickup trucks.
Despite the big success, GM did not adjust its guidance for the year. Net income is between $9.6 billion and $11.2 billion and adjusted earnings before interest and taxes between $13 billion and $15 billion, or $6.50 and $7.50 per share.
GM Chief Executive Mary Barra said Tuesday that the company reaffirmed its guidance “despite a challenging environment as demand remains strong for GM products and we are actively managing the headwinds we face.”
Most investors were expected to look beyond the Detroit automaker’s quarterly results in favor of any change in guidance or commentary on larger economic issues. Inflation in particular has already dominated the conversation on Wall Street at the start of earnings season.
Investors are closely watching auto industry earnings and forecasts for any signs that consumer demand may weaken amid rising interest rates and fears of a recession.
For the third quarter, GM reported adjusted net income of $4.3 billion, up from $2.9 billion a year earlier. Its adjusted profit margin for the quarter narrowed to 10.2% compared to 10.7% during the third quarter of 2021.
On an unadjusted basis, net income was $3.3 billion, up $885 million from a year earlier. The company’s top earner, as it was, was North America with adjusted earnings of $3.9 billion, up from $2.1 billion a year earlier. Earnings also rose $60 million in China compared to the third quarter of 2021, while earnings at its financial arm fell to $911 million, down $182 million from a year earlier.
GM Financial’s lower earnings follow strong results during the coronavirus pandemic, as consumers, until recently, found it easy to finance vehicles with low interest rates and record high prices.
This story is evolving. Check back for updates.
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