GM Q3 Profit Tops Estimates; Confirms FY22 View

(RTTNews) - Automaker General Motors Co. on Tuesday reaffirmed its fiscal 2022 earnings guidance amid ongoing strong demand after reporting higher third-quarter earnings above market estimates. Revenues for the quarter climbed from last year, but missed analysts' view.

In pre-market activity on the NYSE, GM shares were gaining around 5.2 percent to trade at $37.59.

GM Chair and CEO Mary Barra said, "We're delivering on our commitments and affirming our full-year guidance despite a challenging environment because demand continues to be strong for GM products and we are actively managing the headwinds we face. ...For growth beyond 2025, we continue to secure our future with strategic supply agreements and direct investments in natural resource recovery, processing and recycling."

Regarding the Chevrolet Bolt EV and Bolt EUV, the company said it is increasing production from 44,000 units this year to 70,000 units next year.

For the year 2022, the company continues to expect net income of between $9.6 billion and $11.2 billion, and earnings per share between $5.76 and $6.76. On an adjusted basis, EBIT is still expected between $13.0 billion and $15.0 billion, and earnings per share between $6.50 and $7.50.

On average, 20 analysts polled by Thomson Reuters expect earnings of $6.79 per share for the year. Analysts' estimates typically exclude special items.

In its third quarter, net income attributable to stockholders came in at $3.31 billion or $2.25 per share, compared to $2.42 billion or $1.62 per share last year.

The prior year's adjusted earnings were $1.52 per share. Analysts expected the company to earn $1.88 per share in the quarter.

EBIT-adjusted surged to $4.29 billion from last year's $2.92 billion. EBIT-adjusted margin, meanwhile, dropped to 10.2 percent from last year's 10.9 percent.

The company's revenue for the quarter rose 56.4 percent to $41.89 billion from $26.78 billion last year. Analysts expected revenues of $42.22 billion for the quarter.

GM said it earned more than 8 percent of the U.S. electric vehicle market in the third quarter thanks to record sales of the Chevrolet Bolt EV and Bolt EUV.