As a result of increased automobile prices, General Motors (GM stock), the largest carmaker in the United States, reported Tuesday results that were greater than expected for the company’s third quarter, while at the same time maintaining its profit projection for the whole year.
GM Stock
General Motors (NYSE:GM) said that its adjusted earnings for the three months that ended in September came in at $2.25 per share, which is an increase of 48.5% compared to the same time last year and is significantly higher than the average estimate on Wall Street of $1.88 per share. According to GM, group revenues were estimated to be $41.9 billion, representing a 56.4% rise from the previous year and falling just short of the analysts’ average estimate of $42.2 billion in total revenue.
During the three months that ended in September, GM (NYSE:GM) sold just under 555,600 cars, which is a 24% increase from the same period last year and a tally that reclaimed the nine-month U.S. lead over Toyota (TM). Toyota (TM) bested both Ford (F) and GM in total 2021 sales for the first time since 1931. GM reclaimed the nine-month U.S. lead after selling just under 555,600 cars.
GM (NYSE:GM) reaffirmed its forecast that its adjusted earnings for the year 2022 will be between $6.50 and $7.50 per share, which is equivalent to $13 billion to $15 billion, and that its adjusted automotive free-cash flow from operations will be between $7 billion and $9 billion.
In her quarterly letter to investors, General Motors CEO Mary Barra stated that the company is “delivering on our commitments and affirming our full-year guidance despite a challenging environment.” She explained that this is possible despite the fact that demand for GM products remains strong and that the company is “actively managing the headwinds we face.” “We continue to protect our future by entering into strategic supply agreements and making direct investments in the recovery, processing, and recycling of natural resources in preparation for expansion beyond the year 2025.”
GM shares were marked 2.7% higher in early trading immediately following the earnings announcement, bringing the price of the company up to $36.69 per share. This brings the firm’s fall over the last six months down to about 8%.
GM (NYSE:GM), which resumed its quarterly dividend over the summer after a two-year suspension linked to the Covid pandemic, declared another payout of 9 cents per share late Monday night. The dividend is scheduled to be distributed to shareholders of record on December 15 and will be paid out in full on December 15.
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Author Valerie Remorosa 
