General Motors Still Has a Full Tank of Gas Moving into Q4; Raises FY24 Guidance with Gas Powered Q3 Results

Today General Motors (GM) provided their Q3 financial results that surpassed earnings expectations with EPS at $2.96 vs FactSet $2.38 and revenue of $48.76Bn vs FactSet $44.67Bn. In addition to zooming past consensus on the quarter, the company also raised its 2024 earnings guidance for a third time this year to the top end of its prior forecast.

Management has cited a resilient consumer and expects even stronger demand next year due to interest rate cuts. As it relates to the company’s EV business, sales have increased every quarter this year and production of its models is rising. However, EVs only accounted for 4% of GM total deliveries through Q3. Looking forward, the company is aiming to be EBIT positive for its EV sector soon with further dealer training that can help boost sales and scaling of EV production to meet demand. The company’s traditional gas-powered vehicles include eight refreshed gas SUV models through the end of 2025.

Lean inventories and steady demand for gas powered truck and SUV have boded well for the company. General Motors capex has come down to $2.3Bn as of Sept 30 compared to same period a year ago of $2.5Bn. The company is outpacing its competitors on the year up ~46% YTD as Ford (F) is returning high single digit loss on the year, EV competitor Tesla (TSLA) is down ~13% and Stellantis (STLA) is down almost as much as GM is up, with a -43% YTD return.