General Motors (GM) shares soared during U.S. stock trading on Tuesday after reporting strong third-quarter results. Adjusted earnings per share (EPS) reached $2.80, beating the average analyst estimate of $2.31. Meanwhile, revenue exceeded $48.59 billion, slightly lower than the previous year’s $48.76 billion, but well above the analyst consensus of $45.27 billion. GM’s net income was also $1.32 billion, down 57% compared to Q3 2024, likely due to special charges related to EVs.
In addition to reporting solid financial results, GM also announced an improvement in its full-year profit outlook. GM now expects full-year EBIT of $12 billion to $13 billion (previously $10 billion to $12.5 billion) and adjusted auto free cash flow of $10 billion to $11 billion (previously $7.5 billion to $10 billion). The company also expects diluted adjusted earnings per share (EPS) to be in the range of $9.75 to $10.50 (previously $8.25 to $10.00).
“Based on our performance, we are raising our full-year earnings forecast and highlighting our confidence in the company’s trajectory,” GM CEO Mary Barra said in a letter to shareholders. “I would also like to thank the President and his team for making important price changes on Friday,” she added. “The Manufacturer’s Suggested Retail Price Offset Program will help make U.S.-produced vehicles more competitive over the next five years. GM is well-positioned to invest in expanding its already significant domestic sourcing and manufacturing footprint.”
What are the trends in GM stock?
GM stock has soared more than 8% in early trading and is up 28% since the beginning of the year at press time. At $67, GM is trading near the top of its 52-week range and above its 200-day simple moving average. Wall Street analysts are positive on GM stock. Piper Sandler raised his price target on General Motors (GM) from $48 to $66 this week and maintained his rating on the stock at “neutral.”
Additionally, CFRA’s Garrett Nelson said in a note Tuesday morning that GM’s move to avoid U.S. tariffs bodes well for the company and its stock price. “We believe management’s ability to increase guidance despite tariff headwinds of $3.5 billion to $4.5 billion (improved from $4 billion to $5 billion) demonstrates effective mitigation and operational flexibility.”
