GM stock jumps 14% on stellar Q3 performance, automaker raises guidance - what investors must track

GM stock surged 14 per cent on Tuesday and shares were heading for best day in six years at the US Stock Market. This comes as General Motors' quarterly adjusted earnings per share of $2.80 beat expectations. General Motors raised its profit outlook for the year citing relief on two fronts: less pressure from tariff costs and lighter losses on electric cars, as it unwinds massive bets it made on the technology.

GM Earnings Results Highlights

For the three months ended September 30, GM earned $1.33 billion, or $1.35 per share. A year earlier the automaker earned $3.06 billion, or $2.68 per share.


Earnings, adjusted for one-time gains and costs, were $2.80 per share. That easily beat the $2.28 per share that analysts surveyed by Zacks Investment Research were calling for.

Revenue totaled $48.59 billion, topping Wall Street's estimate of $44.27 billion.

GM now foresees full-year adjusted earnings between $9.75 and $10.50 per share. Its prior outlook was for $8.25 to $10 per share. Analysts polled by FactSet predict full-year earnings of $9.46 per share.

GM previously announced $4 billion in capital investments to onshore production at plants in Tennessee, Kansas, and Michigan over the next two years. Barra said that once those investments are in place, the company plans to make more than 2 million vehicles per year in the U.S. The automaker is also investing nearly $1 billion to build a new generation of advanced, fuel-efficient V8 engines in New York.

GM remains committed to its Cadillac, Chevrolet and GMC EVs, with GM CEO Mary Barra saying that the automaker anticipates their performance will improve, even in a smaller market.

FAQs

Q1. How have GM stocks performed?
A1. GM stock surged 14 per cent on Tuesday and shares were heading for best day in six years at the US Stock Market.

Q2. What do GM investors must track?
A2. General Motors raised its profit outlook for the year citing relief on two fronts: less pressure from tariff costs and lighter losses on electric cars, as it unwinds massive bets it made on the technology.