GM raises 2024 earnings guidance after easily topping Wall Street's third-quarter expectations

DETROIT — General Motors easily outperformed Wall Street's third-quarter earnings expectations, leading the Detroit automaker in raising key guidance targets for 2024.

Here's how the company performed in the third quarter, compared with average estimates compiled by LSEG:

This marks the third time this year that GM has updated its guidance after beating Wall Street's top- and bottom-line expectations, led by the automaker's North American operations.

GM now expects full-year adjusted earnings before interest and taxes of between $14 billion and $15 billion, or $10 and $10.50 a share, up from between $13 billion and $15 billion, or $9.50 and $10.50. It also raised its adjusted automotive free cash flow forecast to between $12.5 billion and $13.5 billion, up from $9.5 billion and $11.5 billion.

The automaker tightened its net income attributable to common stockholders, which excludes some dividend payouts, to between $10.4 billion and $11.1 billion, or $9.14 and $9.63 per share. That compared to its previous guidance of $10 billion to $11.4 billion, or $8.93 and $9.93.

Shares of GM were up roughly 3% during premarket trading Tuesday.

The automaker has topped Wall Street's EPS estimates for nine consecutive quarters and revenue for eight straight quarters.

GM's third-quarter results were assisted by continued strong pricing, offsetting losses in China and year-over-year cost increases of $200 million in labor and $700 million in warranty costs.

GM CFO Paul Jacobson said the company's average transaction price per vehicle, which Wall Street has been monitoring for signs of weakening,  remained over $49,000 from July through September.

"The consumer has held up remarkably well for us," he said during a media briefing. "Nothing we see