GM raises guidance after beating Wall Street expectations, lowering tariff costs

Core Insights - General Motors reported strong Q3 results, beating both revenue and earnings expectations, which led to a significant increase in share price [1][5] - The company raised its guidance for Q4, indicating positive future performance despite tariff impacts [4][6] Financial Performance - Q3 EPS was $2.80, exceeding the estimate of $2.31 [1] - Total automotive revenue for Q3 reached $48.59 billion, surpassing the expected $45.27 billion [2] - Adjusted EBIT for Q3 was $3.38 billion, down from $4.12 billion year-over-year, with an adjusted EBIT margin of 6.9% compared to 8.4% last year [2] - Auto free cash flow for Q3 was $4.2 billion, down from $5.8 billion in the previous year [2] Regional Performance - North America adjusted EBIT was $2.51 billion, down from $3.98 billion year-over-year, with a margin of 6.2% compared to 9.7% last year [2] - International adjusted EBIT improved to $226 million from $42 million last year [3] - Profit from China swung to $80 million in Q3, recovering from a loss of $137 million in the same quarter last year [3] Future Guidance - Adjusted EBIT guidance for Q4 is now set at $9.75 billion to $10.5 billion, an increase from the previous guidance of $8.25 billion to $10 billion [4] - Auto free cash flow guidance for Q4 has been raised to $10 billion to $11 billion, up from the previous expectation of $7.5 billion to $10 billion [4] - The expected impact of tariffs for 2025 has been lowered to $3.5 billion to $4.5 billion, down from an earlier estimate of $4 billion to $5 billion [4][5]