General Motors (GM) once again exceeded Wall Street expectations in its third-quarter earnings report, pushing the company to raise its 2024 earnings guidance and the third time the company has adjusted its forecast this year, thanks to strong performance from its North American business and continued price increases.

Highlights of third quarter earnings report

General Motors released third-quarter data as follows:

• Earnings per share (EPS): Adjusted $2.96, significantly higher than expectations of $2.43.
• Revenue: $4.876 billion, exceeding expectations of $4.459 billion.

Updated full-year performance guidance

• Adjusted earnings before interest and tax (EBIT):$14 billion to $15 billion, revised up from $13 billion to $15 billion.
• Adjusted earnings per share: $10 to $10.50, increased from $9.50 to $10.50.
• Auto free cash flow: $12.5 billion to $13.5 billion, upward from $9.5 billion to $11.5 billion.

General Motors has continuously exceeded Wall Street expectations, marking that its earnings per share have exceeded expectations for nine consecutive quarters and revenue has exceeded expectations for eight consecutive quarters.The strong performance in the third quarter was mainly due to high transaction prices in North America, with average vehicle prices still exceeding US$49,000, effectively offsetting a US$900 million increase in labor and warranty costs and continued losses in the China market.

As cash flow and adjusted earnings expectations rise, GM appears to be in a good position to grow in 2024.Its ability to maintain pricing power and withstand cost pressures paints an optimistic outlook for the company.

Other earnings highlights

• Verizon (VZ): Third-quarter revenue was $33.3 billion, slightly below analyst expectations of $33.43 billion.However, the company added 239,000 postpaid wireless users, exceeding expectations.Although revenue fell short of expectations, Verizon's fixed wireless services continued to grow, adding 363,000 customers, reaching long-term goals ahead of schedule.
• 3M: The report showed that GAAP earnings per share surged 154% year-on-year to $2.48, and adjusted earnings per share rose 18% to $1.98.The company raised its 2024 adjusted earnings per share guidance to US$7.20 to US$7.30, reflecting strong demand for electronics and industrial products.However, cash outflows caused by litigation remain a concern.
• Kimberly-Clark (KMB): The company lowered its full-year sales forecast after third-quarter revenue fell short of expectations as inflation-affected consumers turned to cheaper alternatives.Although overall sales were flat, the price increase helped the company report adjusted earnings per share of $1.83, exceeding expectations of $1.70.
• GE Aerospace: Upgraded its full-year profit forecast to $4.20 to $4.35 per share, driven by strong demand for after-sales services due to delayed delivery of new aircraft.The company's third-quarter profit rose 25%, driven by rising demand for spare parts and maintenance services.

summarize and analyze

GM continues to exceed analyst expectations and raises its 2024 financial forecast, indicating that it is in good financial health and confident about future performance.At the same time, other companies performed differently, with 3M guiding litigation costs, while GE benefiting from strong demand in the aviation sector.