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Shift to pickups and SUVs drives an earnings beat for GM in third-quarter -stock surges 10% pre-market

Matthew DeBord   

Shift to pickups and SUVs drives an earnings beat for GM in third-quarter -stock surges 10% pre-market
Transportation1 min read

Chevy Silverado

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A 2019 Chevrolet Silverado pickup.

  • General Motors posted a beat on third-quarter earnings.
  • The automaker earned an adjusted $1.87 a share on revenue of $35.8 billion.
  • Pickups and SUV sales in the US drove the results.
  • Shares surged nearly 10% ahead of Wednesday's opening bell
  • Watch General Motors trade live.

General Motors on announced third-quarter results that topped Wall Street estimates. The automaker earned an adjusted $1.87 a share on revenue of $35.8 billion. Analysts had expected $1.26 per share and revenue of $34.85 billion.

The North American market again pulled the train for the largest US automaker by sales. GM achieved a 10.2% margin, on the back of new pickup trucks and crossover SUVs.

But the China market was also strong.

"Despite challenging market conditions, GM China achieved record third-quarter equity income, driven by a strong mix of vehicles in popular segments, led by record Cadillac sales and strong Chevrolet deliveries," the carmaker said in a statement. "GM China is introducing 10 new or refreshed models in the second half of 2018."

In comments to the media after the results were announced, new CFO Divyha Suryadevara highlighted GM's fundamentals, especially pricing.

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

GM surged in pre-market trading Wednesday, up more than 9% to $37. Shares were down 18% this year through Tuesday.

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