GM boosts full-year outlook as it foresees a smaller impact from tariffs and 3Q results top Street

Core Viewpoint - General Motors (GM) is increasing its full-year adjusted earnings forecast due to better-than-expected third-quarter performance, with shares rising over 9% prior to market opening Group 1: Earnings Performance - For the third quarter, GM reported earnings of $1.33 billion, or $1.35 per share, compared to $3.06 billion, or $2.68 per share, in the same period last year [5] - Adjusted earnings were $2.80 per share, surpassing analysts' expectations of $2.28 per share [6] - Revenue for the quarter reached $48.59 billion, exceeding Wall Street's estimate of $44.27 billion [6] Group 2: Tariff Impact and Mitigation - GM has reduced its full-year gross impact expectations from tariffs to a range of $3.5 billion to $4.5 billion, down from a previous guidance of $4 billion to $5 billion [2] - The company anticipates that its tariff mitigation actions will offset approximately 35% of the impact due to a lower tariff base [2] - President Trump extended tariff relief for domestic automakers on auto parts until 2030, which is part of a broader effort to promote American manufacturing while mitigating costs from import taxes [3][4] Group 3: Future Outlook - GM now forecasts full-year adjusted earnings between $9.75 and $10.50 per share, an increase from the prior outlook of $8.25 to $10 per share [6] - Analysts predict full-year earnings of $9.46 per share, indicating a positive outlook for GM's financial performance [6]