General Motors Co. announced on Tuesday that it has revised its fiscal 2024 adjusted earnings forecast, aligning or surpassing market predictions, following stronger-than-expected third-quarter results in both earnings per share and revenue. However, net income for the period experienced a slight decline.
Ahead of the market opening at the NYSE, GM’s stock saw an uptick of approximately 2 percent, reaching $49.90.
For fiscal year 2024, GM now anticipates net income attributable to shareholders to range between $10.4 billion and $11.1 billion, up from its prior projection of $10.0 billion to $11.4 billion. The company forecasts earnings per share to fall between $9.14 and $9.64, an adjustment from the earlier estimate of $8.93 to $9.93. Adjusted earnings per share are predicted to be between $10.00 and $10.50, compared to the earlier range of $9.50 to $10.50.
According to data collected by Thomson Reuters, analysts generally expect GM to achieve earnings of $10 per share, excluding special items. Additionally, GM is projecting adjusted EBIT—a critical earnings metric—to span from $14.0 billion to $15.0 billion, up from an earlier outlook range of $13.0 billion to $15.0 billion.
The company's financial outlook for 2024 reflects anticipated capital expenditures of $10.5 billion to $11.5 billion, which includes investments in its battery cell manufacturing partnerships.
In its third-quarter performance, GM reported a marginal decrease of 0.3 percent in net income attributable to common stockholders, totaling $3.029 billion, compared to $3.038 billion from the previous year. Nevertheless, earnings per share increased by 21.8 percent to $2.68 from last year's $2.20, due to a lower share count. Adjusted earnings per share rose to $2.96 from $2.28 in the prior year.
Quarterly revenue climbed by 10.5 percent to $48.76 billion, up from the prior year's $44.13 billion. Market expectations had anticipated earnings of $2.43 per share on revenue of $44.58 billion for the quarter.
Total wholesale vehicle sales in the automotive segment increased, reaching 1.03 million units, compared to 981 thousand units in the previous year.
