GM Raises 2024 Guidance, 3M’s EPS Surges, Verizon Misses, GE Aerospace Boosts Profit

GM Raises 2024 Earnings Guidance After Beating Q3 Expectations

General Motors (GM) has once again outperformed Wall Street expectations in its third-quarter earnings, prompting the automaker to raise its 2024 guidance. This is the third time in 2024 that GM has updated its forecast, a move driven by robust North American operations and continued strong pricing.

For Q3, GM reported:

• Earnings per share (EPS): $2.96 (adjusted), well above the $2.43 expected.
• Revenue: $48.76 billion, beating the forecast of $44.59 billion.

GM’s updated full-year forecast includes:

• Adjusted earnings before interest and taxes (EBIT): $14 billion to $15 billion, up from $13 billion to $15 billion.
• Adjusted EPS: $10 to $10.50, revised upward from $9.50 to $10.50.
• Automotive free cash flow: $12.5 billion to $13.5 billion, up from $9.5 billion to $11.5 billion.

The company has consistently surpassed Wall Street’s expectations, marking nine straight quarters of EPS beats and eight consecutive quarters of revenue beats. GM’s strong Q3 performance was primarily driven by higher transaction prices in North America, with the average vehicle price remaining above $49,000. This strength helped offset $900 million in combined labor and warranty cost increases as well as ongoing losses in China.

With rising cash flow and adjusted earnings projections, GM appears well-positioned for a robust 2024. Its ability to maintain pricing power and withstand cost pressures paints a bullish outlook for the company.

Other Earnings Highlights

• Verizon (VZ) reported Q3 revenue of $33.3 billion, slightly missing analysts’ expectations of $33.43 billion. However, the company added 239,000 postpaid wireless subscribers, surpassing forecasts. Despite the revenue miss, Verizon’s fixed wireless service continues to grow, with 363,000 new customers, meeting long-term targets early.
• 3M (MMM) saw a significant 154% year-over-year increase in GAAP EPS to $2.48, with adjusted EPS up 18% to $1.98. The company raised its full-year 2024 adjusted EPS guidance to a range of $7.20 to $7.30, reflecting strong demand in electronics and industrial products. However, cash outflow due to litigation remains a concern.
• Kimberly-Clark (KMB) cut its full-year sales forecast after missing Q3 revenue estimates, as inflation-weary consumers shifted to cheaper alternatives. While overall volumes were flat, price increases helped the company report an adjusted EPS of $1.83, beating expectations of $1.70.
• GE Aerospace (GE) raised its full-year profit forecast to $4.20-$4.35 per share, driven by strong demand for aftermarket services due to delayed new aircraft deliveries. The company’s Q3 profit increased 25%, supported by rising demand for spare parts and maintenance services.

Recap Analysis

GM’s consistent ability to outperform analysts’ expectations and its upward revisions for 2024 suggest solid financial health and confidence in future performance. Meanwhile, other companies faced mixed results, with 3M raising guidance despite litigation costs, and GE benefiting from high demand in the aerospace sector.