General Motors (NYSE:GM) reported robust third-quarter earnings, exceeding Wall Street expectations with an earnings per share (EPS) of $2.96 and EBIT of $4.1 billion on sales of $48.8 billion. Analysts, according to FactSet, had anticipated an EPS of $2.45 and an operating profit of $3.3 billion from $44.7 billion in sales. The company ended the quarter with a diluted share count of 1.12 billion, down 19% compared to the previous year.
Despite achieving 10.5% YoY revenue growth, General Motors faced challenges in maintaining its market share, which fell to 8.1% from 9%. While the company retained its 16.5% market share in the U.S. and expanded in other North American markets, it saw a decline in China, where its market share fell from 8.3% to 6.5%.
In light of the strong performance, General Motors raised its full-year 2024 earnings guidance, adjusting net income projections from a previous range of $10-$11.4 billion to $10.4-$11.1 billion. The most notable update came in automotive operating cash flow, which increased from $19.2-$22.2 billion to $22-$24 billion. Additionally, free cash flow guidance saw a significant boost, with a new midpoint of $13 billion, up from the prior $10.5 billion.
On the innovation front, General Motors drivers now have access to approximately 18,000 Tesla (TSLA) Supercharger stations, enhancing connectivity with over 232,000 public Level 2 and DC fast chargers in the U.S. and Canada. It also announced a partnership to deploy Cruise vehicles on the Uber (UBER) platform by the first half of 2025, signalling its commitment to expanding its autonomous driving ambitions.
This article first appeared on GuruFocus.