GM stock falls despite third-quarter earnings beat
Investing.com -- General Motors (NYSE: GM) shares are down over 5% premarket on Tuesday after the company reported its third-quarter results.
Adjusted earnings per share of $3.70 narrowly beat analyst estimates of $3.69, though shares fell as investors focused on the company’s raised but still cautious full-year guidance.
The automaker posted revenue of $50.0 billion for the quarter, surpassing the consensus estimate of $48.77 billion and marking a 2.9% increase from $48.6 billion in the same period last year. GM narrowed its full-year adjusted EPS guidance to a range of $12.75 to $13.75, up from the previous range of $12.00 to $14.00. However, the midpoint of $13.25 falls below the analyst consensus of $13.42.
The company also updated its full-year adjusted EBIT guidance to $14.5 billion to $15.5 billion, narrowing from the prior range of $14.0 billion to $16.0 billion. GM raised its adjusted automotive free cash flow guidance to $11.5 billion to $12.5 billion, up from $9.5 billion to $11.5 billion previously.
GM North America delivered adjusted EBIT of $3.6 billion with an 8.7% margin, up from $2.5 billion and a 6.2% margin in the year-ago quarter. The company’s international operations posted adjusted EBIT of $28 million, down from $226 million a year earlier, while China equity income declined to $32 million from $80 million.
The company announced it completed its $6.0 billion share repurchase program and received board approval for a new $20.0 billion multi-year buyback authorization. GM also declared a quarterly dividend of $0.18 per share, payable December 17, 2026.