General Motors beats quarterly profit estimates on strong demand for pickups
General Motors Co. reported a better-than-expected profit in the third quarter as strong demand for trucks powered its recovery from a slump in sales earlier this year.
The Detroit automaker said Thursday adjusted earnings per share came to $2.83 in the quarter, beating an analyst consensus estimate for $1.45 a share.
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That was up from $1.72 a year ago and better than the second quarter, when GM posted its first loss in more than a decade.
Shares of the company rose as much as 7.3% in premarket trading after closing Wednesday at $35.24.
GM swung back into the black as its plants resumed production following a six-week springtime shutdown due to the coronavirus and as more pandemic-weary buyers snapped up vehicles such as its lucrative Chevrolet Silverado and GMC Sierra pickups.
“This year, and the third quarter, is a testament to GM’s resilience," Chief Executive Officer Mary Barra said in a statement.
The results put the carmaker on a path toward a goal for operating profit as high as $5 billion for the full year. That would mark a significant turnaround after the production and sales hit earlier this year prompted GM to withdraw annual guidance.
The company’s revenue was $35.5 billion, compared with analysts’ estimate for $35.8 billion.