GM 3Q results top expectations on strong truck, crossover sales

By EarningsFOXBusiness

GM 3Q earnings top estimates

FBN's Maria Bartiromo breaks down General Motors' third-quarter results.

General Motors said Wednesday strong sales of full-size trucks and crossover vehicles in the third quarter boosted profit and revenue for the period.

Continue Reading Below

The company earned $1.87 per share on revenue of $35.79 billion. Analysts had expected the largest U.S. carmaker to report $1.25 per share on revenue of $34.85 billion, according to Refinitiv.

TickerSecurityLastChange%Chg
GMGENERAL MOTORS COMPANY36.06-1.20-3.22%

In the year-earlier quarter the Detroit-based corporation earned an adjusted $1.32 per share on sales of $33.62 billion.

GM said it expects full-year earnings per share of $5.80 and $6.20 vs. a prior view of approximately $6, noting potential upside from strong performance and a favorable tax rate.

The news follows third-quarter results from Ford and Tesla that topped analyst expectations.

GM said U.S. sales in the July-September quarter fell 11 percent to 694,638. The company's reduced incentive spending and increased sales of higher-margin trucks and SUVs in the quarter resulted in average transaction prices rising by approximately $700 to $35,974.

More from FOX Business ...

GM North America posted strong margins of 10.2 percent in the third quarter, driven by an increase in average transaction prices that rose to record third-quarter highs.

In China, General Motors and its joint ventures delivered 835,934 vehicles in the third quarter. Sales in China were down 14.9 percent from a year earlier due to the softening vehicle market.

GM, which employees more than 180,000 people and has operations on five continents, on Tuesday declared a fourth-quarter 2018 dividend of $0.38, which is payable Dec. 20, 2018.

"Our disciplined approach to the U.S. market, combined with strength in China and further growth of GM Financial, drove a very strong quarter," Dhivya Suryadevara, chief financial officer, said in a statement. "We will continue to take actions to mitigate headwinds including foreign currency volatility and commodity costs.”