General Motors Co. beat Wall Street’s consensus third-quarter profit estimate on record sales and confirmed its target for the year on the back of strong sales of its largest and most luxurious Cadillac SUV. truckan indicator that rising interest rates have yet to affect its business.
GM reported adjusted profit of $2.25 a share on Tuesday, beating analyst expectations of $1.89 a share. It also maintains guidance for full-year returns of $6.50 to $7.50 a share.
The quarterly results show that auto profits are resilient even as the economy weakens and inflation remains high. Improved availability of semiconductors and other components has helped drive sales of the highest-margin vehicles in the United States, particularly pickup trucks and full-size SUVs. GM is also more profitable in China.
“We are delivering on our commitments and affirming our full-year guidance despite the challenging environment as demand continues to grow strongly for GM products and we are actively managing these challenges.” difficulties we face,” GM CEO Mary Barra said in a letter to shareholders.
The Detroit automaker posted $41.9 billion in revenue as U.S. vehicle sales jumped 24% in the three months ended September 30. Analysts expect GM to bring in $42 billion in revenue. in the quarter. Electric vehicle market leader Tesla Inc. Last week, the company reported revenue of $21.5 billion. Traditional rival Ford Motor Co. its earnings report on Wednesday.
The automaker’s results beat profits of $1.53/share a year ago and $1.14/share in the second quarter, easing concerns about vehicle affordability and affordability. Depression.
Shares of the automaker rose 5.1% in pre-market trading to $37.55 as of 7:35 a.m. New York time. Shares have fallen about 39% this year.
The company expects adjusted pre-interest and tax earnings in 2022 of $13 billion to $15 billion, unchanged from previous projections.
GM also showed improvement in its business in China, the world’s largest auto market. The company said it made $330 million from its operations in China, up 22% year-on-year even though shutdowns related to the Covid-19 pandemic have weighed on the local economy. .
Car manufacturer’s yacht self-driving car The unit lost $497 million in its most recent quarter and has lost $1.4 billion in total so far this year as GM continues to develop autonomous technology and prepares to expand robotaxi services in Phoenix and Austin. .
Related videos:
