GM surges on better-than-expected Q3 earnings, forecasts a smaller hit from tariffs and higher profits
GM reported third-quarter earnings before the market opened on Tuesday.
Electric vehicle sales and elevated profits revved up GM in the third quarter, sending shares surging more than 9% in premarket trading Tuesday. If these gains hold, it would mark the stock’s best day of the year.
The Detroit automaker posted adjusted diluted earnings per share of $2.80, more than 20% better than Wall Street’s expectations of $2.29 per share. Its sales reached $48.6 billion, slightly down from last year but ahead of Wall Street’s expected $45 billion.
The automaker hiked its full-year diluted earnings outlook to between $9.75 and $10.50, from a range of $8.25 to $10. Analysts polled by FactSet were anticipating $9.46.
GM reported a net tariff impact of $1.1 billion in Q3, matching the second quarter. The automaker lowered its full-year gross tariff impact outlook to between $3.5 billion and $4.5 billion, from between $4 billion and $5 billion.
Electric vehicles were a big seller between July and September, with GM delivering 66,501 EVs in the quarter — a sales record. So far this year, the automaker has sold more than twice as many EVs as it did last year. Much of the third-quarter surge had to do with customers rushing to capitalize on the expiring $7,500 federal EV tax credit.
GM attempted to keep the EV party going with an accounting loophole, but has since scrapped that plan after incurring anger from GOP lawmakers. Earlier this month, GM had said it would take a $1.6 billion hit in Q3 as it adjusts its EV capacity to a lower demand environment.
