By Kalea Hall
Oct 20 (Reuters) – General Motors’ third-quarter core profit rose sharply on the back of strong pickup truck sales, but its shares fell on Tuesday after the automaker’s earnings-per-share forecast for the full year fell short of analyst expectations.
The company said quarterly earnings before interest and tax, not including one-time items (adjusted EBIT), rose 22% from a year earlier, to $4.1 billion. That amounted to $3.70 per share, topping analyst expectations of $3.63, according to LSEG data.
GM said it expected to end 2026 with adjusted EBIT in the range of $14.5 billion to $15.5 billion, narrowed from previous guidance of $14 billion to $16 billion.
It tightened its annual adjusted earnings-per-share forecast to between $12.75 and $13.75, the midpoint of which is below analysts’ estimates of $13.41, according to data compiled by LSEG.
GM shares fell about 4% in premarket trading.
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GM said it remained confident despite inflationary pressures from higher logistics and energy costs, tariffs and other expenses. Commodity inflation, including higher expenses for logistics and computer chips, would total about $2 billion this year, the high end of its previous forecast, it said.
Its board approved a multi-year, $20 billion stock buyback program. GM has bought back about $29.5 billion of its own shares since 2023, driving down its overall share count to help its per-share profit results.
In the third quarter, it sold a higher mix of large pickup trucks and fewer electric vehicles, which helped the bottom line. The company has been pulling back on sales of EVs, which historically have lost money, following the Trump administration’s withdrawal of support for them.
Revenue totaled $50 billion, up 2.9% from a year earlier. In North America, the profit margin improved to 8.7%, from 6.2% a year earlier, despite a slight decline in quarterly sales.
GM said “the path forward is more challenging,” but reiterated that it expects next year’s results to be better, assuming continued strong consumer demand and a moderating of cost pressures on commodities and logistics.
(Reporting by Kalea Hall; Editing by Mike Colias, Kirsten Donovan and Joe Bavier)
