General Motors (NYSE:GM) has released its third-quarter 2023 financial results, revealing adjusted earnings of $2.28 per share. This surpassed the Zacks Consensus Estimate of $1.84, driven by higher-than-expected profits from GMNA, GMI, and the Financial segments. The bottom line also showed growth compared to the year-ago quarter’s earnings of $2.25 per share.
GM’s third-quarter revenues reached $44,131 million, surpassing the Zacks Consensus Estimate of $43,296 million and marking an increase from the $41,889 million recorded in the same period last year.
Segmental Performance
- GM North America (GMNA): The segment generated net revenues of $36,106 million in the third quarter, up from $34,691 million in the corresponding period of 2022. Although revenues lagged the estimated $36,557.9 million, it still showed growth. Wholesale vehicle sales in the GMNA unit totaled 810,000 units, beating our estimate of 840,000 units. The segment’s operating profit was $3,526 million, outperforming our forecast of $2,991.9 million, thanks to benefits from the fixed cost reduction program.
- GM International (GMI): GMI’s net revenues in the reported quarter came in at $4,330 million, exceeding the year-ago quarter’s $3,980 million and our estimate of $3,628 million. The segment’s wholesale vehicle sales of 171,000 units outpaced our projection, despite decreasing from 182,000 units in the year-ago quarter. GMI reported an operating profit of $357 million, which surpassed our estimate of $312.2 million, driven by favorable pricing, delivery outperformance, and the benefits of the fixed cost reduction program.
- GM Financial: GM Financial generated net revenues of $3,641 million in the quarter, exceeding our prediction of $3,076.4 million. The segment recorded an EBIT-adjusted operating profit of $741 million, outperforming our forecast of $604.6 million, thanks to portfolio growth and a higher effective yield.
- GM Cruise: GM Cruise recorded net revenues of $25 million in the third quarter, in line with our projection. The segment posted an operating loss of $732 million, wider than the loss of $497 million reported in the prior-year quarter and exceeding our estimate of $516.6 million, primarily due to higher-than-expected costs related to operational scaling.
Financial Position
As of September 30, 2023, General Motors had cash and cash equivalents of $25,224 million, compared to $19,153 million as of December 31, 2022. The long-term automotive debt at the end of the quarter was $15,962 million, compared with $15,885 million as of December 31, 2022.
General Motors’ net automotive cash provided by operating activities amounted to $6,749 million during the quarter under review. The company recorded an adjusted automotive free cash flow of $4,910 million in the third quarter of 2023, a significant increase from the $4,593 million recorded in the year-ago period.
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