Updated: General Motors stock price falls as full-year profit forecast lags behind Wall Street expectations
路透社2026/10/20 11:36Rephrased the first paragraph to emphasize that annual earnings per share are below analyst expectations; added EPS forecasts in the fourth paragraph; included inflation forecasts in the sixth paragraph.
Kalea Hall
Reuters, October 20 - Boosted by strong pickup truck sales, General Motors GM.N saw a significant increase in core profit in the third quarter, but its stock fell on Tuesday as the company’s annual earnings per share forecast came in lower than analysts’ expectations.
The company stated that its quarterly adjusted EBIT (excluding one-off items) rose 22% from a year earlier to $4.1 billion. According to LSEG data, this equates to $3.70 per share, above analyst estimates of $3.63.
General Motors said it expects adjusted EBIT at the end of 2026 to be between $14.5 billion and $15.5 billion, narrowing its previous guidance of $14 billion to $16 billion.
According to data compiled by LSEG, the company narrowed its annual adjusted earnings per share guidance range to $12.75 to $13.75, with the midpoint falling below analysts’ estimate of $13.41.
General Motors shares fell about 4% in pre-market trading.
Stock buybacks signal confidence for 2027
General Motors said it remains confident despite facing inflationary pressures from rising logistics and energy costs, tariffs, and other expenses. The company noted that commodity inflation, including increased logistics and computer chip costs, will total approximately $2 billion this year, at the upper end of its previous forecast range.
Its board approved a multi-year stock buyback plan totaling $20 billion. Since 2023, General Motors has repurchased about $29.5 billion of its own shares, reducing total share count to improve per-share profitability.
In the third quarter, the proportion of large pickup trucks in sales increased while electric vehicle sales declined, helping boost net profit. Following the Trump administration’s rollback of support for electric vehicles, the company has reduced EV sales since the business has historically operated at a loss.
Total revenue reached $50 billion, up 2.9% from a year earlier. In North America, despite a slight drop in quarterly sales, the profit margin rose from 6.2% a year ago to 8.7%.
General Motors said “the road ahead will be tougher,” but reiterated that it expects performance to improve next year, provided consumer demand remains robust and commodity and logistics cost pressures ease.
(To assist non-English speakers, Reuters has automated the translation of its reports into several other languages. Since automated translation may contain errors or lack needed context, Reuters does not guarantee the accuracy of the automated translation text and provides it solely for reader convenience. Reuters assumes no liability for any damages or losses caused by the use of the automated translation feature.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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