GM Results Exceed Wall Street Targets

General Motors once again defied Wall Street’s expectations this year, posting third-quarter results that exceeded analyst projections.

GM's revenue for the quarter was $48.8 billion, beating Wall Street’s expectation of $44.6 billion. I Photo: Michael Kumm Flickr

The strong performance was fueled by steady gasoline-engine truck and SUV sales and a focus on maintaining lean inventories, Nora Eckert reported for Reuters. GM is targeting annual earnings at the top end of its previous forecast, with Chief Financial Officer Paul Jacobson dismissing concerns about economic challenges.

"The consumer has held up remarkably well for us," he told reporters, adding that expected interest rate cuts would further boost demand next year.

GM started the year projecting $12 billion to $14 billion in pretax profit but raised its forecast mid-year to $13 billion to $15 billion, buoyed by strong pricing and consumer spending.

The company recently confirmed it is on track to deliver between $14 billion and $15 billion in pretax profit. GM’s shares rose about 4% in pre-market trading Tuesday. Adjusted earnings per share were $2.96 for the quarter, surpassing analysts’ forecast of $2.43 per share.

Revenue for the quarter was $48.8 billion, beating Wall Street’s expectation of $44.6 billion.

CEO Mary Barra has emphasized stability, reassuring investors by stating that GM’s profit next year is expected to remain similar to this year’s, calming fears of a potential decline in the auto industry’s earnings.