On October 22, 2024, General Motors Co (GM, Financial) released its 8-K filing for the third quarter of 2024, reporting a revenue of $48.8 billion, which exceeded the analyst estimate of $44.58 billion. The company also reported a net income attributable to stockholders of $3.1 billion and an EBIT-adjusted of $4.1 billion. This performance reflects a 10.5% increase in revenue compared to the same period last year.
Company Overview
General Motors Co (GM, Financial) emerged from the bankruptcy of General Motors Corp. in July 2009. The company operates under four segments: GM North America, GM International, Cruise, and GM Financial. GM regained its US market share leader crown in 2022, with a 16.5% share in 2023. The company's Cruise autonomous vehicle arm, after halting operations in late 2023, restarted services in 2024, excluding California. GM owns over 80% of Cruise, and GM Financial became its captive finance arm in 2010.
Performance and Challenges
GM's performance in Q3 2024 is noteworthy, with a revenue increase of $4.63 billion from the previous year. However, the net income attributable to stockholders saw a slight decline of 0.3%, indicating potential challenges in maintaining profitability. The EBIT-adjusted margin improved to 8.4% from 8.1%, showcasing operational efficiency. Despite these achievements, GM faces challenges in its international operations, with GM International's EBIT-adjusted dropping by 88.2%.
Financial Achievements and Industry Importance
GM's financial achievements in Q3 2024 are significant for the automotive industry. The company's ability to exceed revenue expectations highlights its strong market position and operational capabilities. The increase in automotive operating cash flow by 15.7% and adjusted automotive free cash flow by 18.8% underscores GM's robust cash generation, crucial for funding its strategic initiatives, including investments in electric vehicles and autonomous technology.
Key Financial Metrics
Important metrics from GM's financial statements include:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $48.8 billion | $44.1 billion | +10.5% |
| Net Income | $3.1 billion | $3.06 billion | -0.3% |
| EBIT-adjusted | $4.1 billion | $3.56 billion | +15.5% |
| EPS-diluted | $2.68 | $2.20 | +21.8% |
Analysis and Commentary
GM's updated full-year guidance reflects confidence in its financial outlook. The company now expects net income attributable to stockholders between $10.4 billion and $11.1 billion, with an EBIT-adjusted range of $14.0 billion to $15.0 billion. This upward revision is supported by strong cash flow projections, with automotive operating cash flow expected between $22.0 billion and $24.0 billion.
GM Chair and CEO Mary Barra stated, "Our strong third-quarter results and updated guidance reflect the resilience of our business and the strength of our product portfolio."
GM's strategic focus on electric vehicles and autonomous technology positions it well for future growth, despite current challenges in international markets and the autonomous vehicle segment. The company's ability to generate substantial free cash flow is a positive indicator for investors, ensuring continued investment in innovation and market expansion.
Explore the complete 8-K earnings release (here) from General Motors Co for further details.
