General Motors Co. (NYSE: GM) shares surged more than 14% in intra-day trading on Tuesday after the automaker delivered third-quarter earnings well above expectations and raised its full-year profit guidance despite lingering electric vehicle headwinds.
The Detroit-based company reported adjusted earnings of $2.80 per share, topping analyst estimates of $2.32. Revenue reached $48.59 billion, above forecasts of $45.33 billion, though slightly below the $48.76 billion posted a year earlier.
GM lifted its full-year adjusted EPS guidance to between $9.75 and $10.50, up from its prior range of $8.25 to $10.00 and above the $9.45 consensus. The company also raised its forecast for adjusted automotive free cash flow to $10.0–$11.0 billion, compared to $7.5–$10.0 billion previously.
Despite the upbeat results, GM’s quarterly EBIT-adjusted fell 18% year-over-year to $3.38 billion, as margins declined to 6.9% from 8.4%. North American EBIT-adjusted dropped 37.1% to $2.51 billion.
The quarter included $1.59 billion in charges related to the company’s EV strategy realignment and $300 million in costs tied to ongoing investigations into its OnStar Smart Driver program.
GM said it remained committed to its long-term EV profitability goals while emphasizing efficiency improvements and cash flow generation.
