Why Is General Motors (GM) Up 3.7% Since Last Earnings Report?

Core Viewpoint - General Motors reported strong third-quarter earnings, surpassing estimates and showing growth compared to the previous year, which has led to a positive trend in its stock performance [2][3][9]. Financial Performance - Adjusted earnings per share for Q3 2024 were $2.96, exceeding the Zacks Consensus Estimate of $2.49 and up from $2.28 in the same quarter last year [2]. - Total revenues reached $48.75 billion, beating the Zacks Consensus Estimate of $44.29 billion and increasing from $44.13 billion year-over-year [2]. - Adjusted EBIT was $4.11 billion, higher than $3.56 billion in the prior-year quarter [3]. Segmental Performance - GM North America (GMNA) generated net revenues of $41.15 billion, up from $36.1 billion in the same period of 2023, with wholesale vehicle sales increasing to 893,000 units from 810,000 units [4]. - GM International (GMI) reported net revenues of $3.51 billion, down from $4.3 billion year-over-year, with wholesale vehicle sales decreasing to 140,000 units from 171,000 units [5]. - GM Financial's net revenues were $4.03 billion, up from $3.64 billion in the previous year, but fell short of expectations [6]. - GM Cruise recorded net revenues of $26 million, slightly up from $25 million year-over-year, with a narrower operating loss compared to the prior year [7]. Financial Position - As of September 30, 2024, General Motors had cash and cash equivalents of $23.7 billion and long-term automotive debt of $15.5 billion [8]. - Adjusted automotive free cash flow for Q3 2024 was $5.8 billion, an increase from $4.9 billion in the same quarter last year [8]. Guidance and Outlook - For full-year 2024, GM raised its guidance for adjusted EBIT to a range of $14-$15 billion, adjusted EPS to $10-$10.5, and adjusted automotive free cash flow to $12.5-$13.5 billion [9]. - There has been an upward trend in estimates, with a consensus estimate shift of 5.84% [10][11]. - General Motors holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [13].