Mary Barra, CEO of General Motors, speaks to the news media on June 12, 2018 in Detroit, Michigan.
Bill Pugliano | Getty Images
General Motors Wall Street’s earnings expectations for the third quarter were significantly exceeded thanks to its highly profitable trucks and SUVs in North America, the company said on Thursday.
The automaker’s shares rose 7.2% to $ 37.78 ahead of trading.
Here are the numbers:
Adapted EPS: $ 2.83 versus $ 1.38 expected based on average analyst estimates provided by Refinitive
Revenue: $ 35.48 billion versus $ 35.51 billion that is expected
John Stapleton, GM’s interim CFO, said the automaker’s US and China sales are “recovering faster than many people expected, and GM is enjoying robust customer demand for our new vehicles and services, particularly our pickups and SUVs.” in original size. “
GM’s net income rose 74% $ 4.05 billion compared to $ 2.35 billion in the third quarter of 2019.
GM repaid $ 5.2 billion of its revolving credit facilities in the third quarter and another $ 3.9 billion in October. The company expects to repay the balance by year-end while maintaining a strong cash balance.
Former CFO Dhivya Suryadevara told investors in July that the automaker had expected the third quarter to be “slightly stronger” than the fourth quarter. you Leaving GM unexpectedly for the digital payment company Stripe in August.
Suryadevara said if the monthly sales pace was $ 14 million in the second half, investors should expect pre-tax profits of $ 4-5 billion by the fourth quarter. In this scenario, GM expects free cash flow of $ 7 billion to $ 9 billion. Suryadevara declined to publish official guidelines at the time, citing fluidity due to the Coronavirus pandemic.
Cox Automotive estimated the US revenue pace at $ 15.3 million in the third quarter, which should allow GM to beat those forecasts.
GM reported adjusted pre-tax profit of $ 3 billion, or $ 1.72 earnings per share. in the third quarter of 2019. Sales were $ 35.47 billion.
Both Ford engine and Fiat Chrysler exceed Wall Street’s expectations for better-than-expected demand for trucks and SUVs in North America. These are segments of which GM also has significant market shares.
GM’s US vehicle sales declined 17.4% in the fourth quarter, including a 9.9% decrease in the third quarter. This compared to a 5% decrease
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