General Motors Co. (NYSE: GM) reported third-quarter 2018 results before markets opened Wednesday. The automaker posted adjusted diluted earnings per share (EPS) of $1.87 on revenues of $35.79 billion. In the same period a year ago, the company reported EPS of $1.32 on revenues of $33.62 billion. Third-quarter results also compare to the consensus estimates for EPS of $1.25 and $34.85 billion in revenues.
Net income for the quarter totaled $2.5 billion, up from a net loss of $2.98 billion in the year-ago quarter related to the sale of its Opel/Vauxhall business. Adjusted pretax (EBIT) earnings totaled $3.2 billion, up 25% year over year.
GM said that its average transaction price rose to a third-quarter record of more than $36,000, an increase of about $800 year over year and $4,000 higher than the industry average. Total automotive revenues came to $32.28 billion in the quarter, up 5.9% from $30.47 billion in the third quarter of last year.
It’s a good thing the transaction prices rose because sales volumes were down in every geographic region and for every brand. North American sales were 9.8% lower than in the same quarter last year, and China sales were down 14.9%. Total third-quarter sales were down 14.7%, from about 2.32 million units to 1.98 million. For the year to date, U.S. sales are down 1.8% and China sales are down 2.5%. Including Europe and international sales, GM’s year-to-date total is down 12.4%, mostly a result of the sale of its European business.
By brand, Chevy sales were down 8.3% year over year, Buick sales were down 17.1% and Cadillac sales were down 3.9%. For the year to date, Chevy sales are down 0.3%, Buick sales are down 8.6% but Cadillac sales are up 8.8%.
Mary Barra, the company’s CEO, said:
Our third-quarter performance demonstrates our determination to manage risks and deliver strong business results while continuing to advance the future of mobility.
GM raised its adjusted full-year EPS guidance from $6.00 a share $6.20. Consensus estimates call for fourth-quarter EPS of $1.36 and revenues of $37.11 billion. For the full year, analysts are looking for EPS of $5.89 and revenues of $145.5 billion.
It’s worth noting that the full-year estimates dropped sharply over the course of the third quarter. When GM reported second-quarter results in July, analysts were looking for EPS of $6.41 and revenues of $145.98 billion for the full year.
GM’s shares traded up nearly 7% early Wednesday to $35.77, in a 52-week range of $30.56 to $45.52. The 12-month price target for the shares was $44.60 before this morning’s report.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
