FX.co ★ GM Raises FY24 EPS Forecast As Q3 Beats Market

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.