General Motors (GM) Jumps 15% Following Strong Q3 Results and Upgraded Forecast

  • General Motors reported better-than-expected Q3 earnings with adjusted EPS at $2.80 versus $2.31 forecast.
  • Revenue reached $48.59 billion, slightly below last year but well above analyst estimates.
  • Net income fell 57% to $1.32 billion, impacted by a special charge related to electric vehicles (EVs).
  • GM raised its full-year profit guidance, expecting EBIT between $12 billion and $13 billion and adjusted automotive free cash flow of $10 billion to $11 billion.
  • Shares jumped over 8% in early trading, trading near a 52-week high, supported by positive analyst outlooks and tariff improvements.

General Motors saw its stock rise sharply on Tuesday after releasing strong third-quarter results. The company reported adjusted earnings per share (EPS) of $2.80, beating the analyst estimate of $2.31. Revenue was $48.59 billion, slightly lower than last year’s $48.76 billion but exceeding the expected $45.27 billion. Net income, however, dropped 57% to $1.32 billion, primarily due to a special charge associated with its electric vehicle efforts.

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The automaker also updated its full-year financial outlook. It now projects earnings before interest and taxes (EBIT) between $12 billion and $13 billion, up from the prior range of $10 billion to $12.5 billion. Adjusted automotive free cash flow is expected to rise to $10 billion to $11 billion, compared to the previous $7.5 billion to $10 billion. The company’s forecast for adjusted EPS increased to a range of $9.75 to $10.50 from $8.25 to $10.00.

“Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory,” stated GM CEO Mary Barra in her shareholder letter. She also acknowledged recent tariff changes, saying “The MSRP offset program will help make U.S.-produced vehicles more competitive over the next five years, and GM is very well positioned as we invest to increase our already significant domestic sourcing and manufacturing footprint.”

GM shares rose over 8% in early trading Tuesday and reached $67, close to the top of their 52-week range. The stock is up 28% year to date and is trading above its 200-day simple moving average, a common indicator of market trend. Analysts remain positive on the stock; Piper Sandler recently raised its price target on General Motors (GM) to $66 from $48 while maintaining a Neutral rating.

Additionally, CFRA analyst Garrett Nelson noted that GM’s management demonstrated effective strategies to offset tariff challenges estimated between $3.5 billion and $4.5 billion, an improvement from an earlier $4 billion to $5 billion figure. He said this shows the company’s operational flexibility and ability to raise guidance despite external pressures.

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