10-QPeriod: Q3 FY2024

General Motors Co Quarterly Report for Q3 Ended Sep 30, 2024

Filed October 22, 2024For Securities:GM

Summary

General Motors (GM) reported strong financial results for the third quarter of 2024, with total net sales and revenue reaching $48.8 billion, an increase of 10.5% year-over-year. Net income attributable to stockholders remained robust at $3.1 billion, largely consistent with the prior year's quarter. Earnings per share (EPS) on a diluted basis were $2.68, showing a significant increase from $2.20 in the third quarter of 2023, driven by a lower weighted-average share count. The company's operational performance was bolstered by increased wholesale vehicle volumes and favorable pricing, particularly in its North American segment. GM Financial also demonstrated strong performance, with revenue up 10.7% driven by higher finance charge income and a growing portfolio. However, net interest margin for GM Financial was impacted by rising interest expenses due to higher average debt outstanding and benchmark interest rates. Despite this, the company maintains a solid liquidity position and reiterated its full-year 2024 guidance for net income attributable to stockholders, indicating confidence in its ongoing strategy, which balances strong performance in its internal combustion engine (ICE) vehicle portfolio with continued investment in electric vehicles (EVs) and autonomous vehicle (AV) technology.

Financial Highlights

44 data points
Beta

Revenue

$48.76B

Net Income

$3.01B

6.2% Net Margin

EPS (Diluted)

$2.68

Total Assets

$289.29B

Cash & Equivalents

$23.74B

Free Cash Flow

$4.62B

Financial Statements
Beta
Revenue$48.76B
Operating Expenses$45.10B
Operating Income$3.65B
Net Income$3.01B
EPS (Basic)$2.71
EPS (Diluted)$2.68
Shares Outstanding (Basic)1.12B
Shares Outstanding (Diluted)1.13B

Key Highlights

  • 1Total net sales and revenue increased by 10.5% to $48.8 billion compared to the prior year's quarter.
  • 2Net income attributable to stockholders was $3.1 billion, demonstrating consistent profitability.
  • 3Diluted earnings per share (EPS) rose to $2.68 from $2.20 in the prior year, aided by a reduction in outstanding shares.
  • 4GM Financial revenue grew by 10.7%, driven by increased finance charge income and portfolio expansion.
  • 5The company's North America segment showed robust growth in net sales and revenue, up 14.0%, fueled by higher volumes and favorable mix.
  • 6Despite increased interest rates and debt, GM Financial's EBT-adjusted remained strong.
  • 7General Motors reiterated its full-year 2024 guidance, signaling confidence in its financial outlook.

Frequently Asked Questions

General Motors reported total net sales and revenue of $48.8 billion for the third quarter of 2024, representing a 10.5% increase compared to $44.1 billion in the same period of 2023. This growth was primarily driven by higher wholesale vehicle volumes and favorable pricing in its automotive segments.

GM Financial experienced a strong revenue increase of 10.7% to $4.0 billion, largely due to increased finance charge income from higher average interest rates and portfolio growth. However, its EBT-adjusted decreased by 7.3% to $687 million, primarily due to higher interest expenses resulting from increased average debt and rising interest rates, as well as an increased provision for loan losses.

General Motors reiterated its full-year 2024 guidance, expecting net income attributable to stockholders to be between $10.4 billion and $11.1 billion. The company anticipates EBIT-adjusted to be between $14.0 billion and $15.0 billion and diluted EPS to be between $9.14 and $9.64, reflecting confidence in its ongoing strategies, including balancing its ICE vehicle business with investments in EVs and AVs.

The report highlights several risks and uncertainties, including competitive pressures, evolving consumer preferences, the cost and commercialization of EVs and AVs, supply chain disruptions, inflationary pressures, geopolitical instability, and ongoing regulatory scrutiny and litigation related to product safety and emissions. The company is also facing intense competition and pricing pressures in the Chinese market, which is leading to a restructuring of its operations there.