Automaker General Motors (GM) reported strong third-quarter earnings on the back of steady demand for its gasoline-powered cars. The company also raised its full-year guidance for the third time in 2024.
GM’s adjusted earnings per share in Q3 came at $2.96, while analysts expected $2.43. The company also recorded $48.76 billion in revenue, a 10.5% year-over-year increase, versus the estimates of $44.59 billion. This was the eighth consecutive quarter in which GM beat the expectations in both EPS and revenue.
According to CFO Paul Jacobson, GM benefited from consumer resilience and strong pricing.
“The consumer has held up remarkably well for us. Nothing we see has changed from where we’ve been for the last several quarters,“ Jacobson said while predicting that the demand will become even bigger in 2025 due to lower interest rates.
GM now expects its EPS for 2024 to be between $10 and $10.50 a share and forecasts revenue between $14 billion and $15 billion. It previously projected between $9.50 and $10.50 in EPS and between $13 billion and $15 billion in revenue.
The shares of GM surged 9.81% on Tuesday, marking their biggest single-day increase since early 2020, to close at $53.73 per share. The stock is now 49.04% up year-to-date.