GM beats expectations and announces $20 billion share buyback
General Motors posted higher third-quarter revenue and profit than expected. The automaker raised its cash flow forecast but warned of rising commodity costs.
Archive image · Photo: Crisco 1492 / Wikimedia Commons, Public domain (cropped and resized)
General Motors reported its third-quarter results on Oct. 20. Revenue was $50.02 billion, according to CBT News, compared with analyst expectations of $48.7 billion. Adjusted earnings per share were $3.70 (expected: $3.63), and net income attributable to stockholders rose to $3.3 billion from $1.3 billion a year earlier. Adjusted EBIT was $4.1 billion, including $3.6 billion in North America. Equity income from China fell 60% to $32 million.
For the full year, GM now expects adjusted EBIT of $14.5 billion to $15.5 billion (previously $14 billion to $16 billion) and raised its forecast for adjusted automotive free cash flow to $11.5 billion to $12.5 billion. Commodity inflation is expected at about $2 billion, with tariff costs at the low end of the $2.5 billion to $3.5 billion range. GM has so far recorded $11.2 billion in charges for scaling back its electric vehicle plans.
The company also announced a new $20 billion multiyear share repurchase authorization. “GM is performing well, and we are working hard to continue our momentum despite growing inflationary pressures,” CEO Mary Barra wrote in her letter to shareholders.