General Motors Co (GM) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic EV ...

GuruFocus News
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In This Article:

  • Revenue: $49 billion, up 10% year-over-year.

  • EBIT Adjusted: $4.1 billion, with 8.4% EBIT-adjusted margins.

  • EPS Diluted Adjusted: $2.96 per share, up roughly 30% year-over-year.

  • Adjusted Automotive Free Cash Flow: $5.8 billion, up $900 million compared to last year.

  • North America EBIT-Adjusted Margins: 9.7%, resulting in $4 billion of EBIT adjusted.

  • US Incentives: Approximately 2.4 percentage points lower than the industry average.

  • Stock Repurchase: $1 billion worth of stock repurchased, retiring 23 million shares.

  • GM Financial EBT Adjusted: $700 million, down $50 million year-over-year.

  • Cruise Expenses: $400 million, down $350 million from a year ago.

  • Full Year EBIT Adjusted Guidance: $14 billion to $15 billion.

  • Full Year EPS Diluted Adjusted Guidance: $10 to $10.50 per share.

  • Full Year Adjusted Automotive Free Cash Flow Guidance: $12.5 billion to $13.5 billion.

Release Date: October 22, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • General Motors Co (NYSE:GM) reported strong third-quarter results, with revenue up 10% to $49 billion, driven by growth in both ICE and EV segments.

  • The company achieved $4.1 billion in EBIT adjusted, with an 8.4% EBIT-adjusted margin, and EPS diluted adjusted of $2.96, up roughly 30% year over year.

  • GM's retail market share in the US has grown, supported by above-average pricing and well-managed inventories.

  • The company is on track to produce and wholesale about 200,000 EVs in North America this year, with a focus on making EVs profitable on an EBIT basis.

  • GM has successfully maintained strong pricing with significantly lower incentives compared to competitors, demonstrating the strength of its product portfolio and disciplined go-to-market strategy.

Negative Points

  • The operating environment in China remains challenging, with GM International's third-quarter EBIT adjusted down $300 million year-over-year.

  • Warranty costs have increased due to inflationary pressures and claims on high-volume vehicles, leading to a $700 million year-over-year adjustment in the third quarter.

  • The company anticipates lower earnings in the fourth quarter due to factors such as supply chain disruptions and seasonal production slowdowns.

  • GM faces fierce competition and a tough regulatory environment, necessitating a focus on optimizing ICE and EV margins.

  • Despite progress, GM's EV business is still working towards achieving profitability, with ongoing efforts needed to drive improvements across the business.

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